diff --git a/INSTALL b/INSTALL
new file mode 100644
index 0000000..069d24d
--- /dev/null
+++ b/INSTALL
@@ -0,0 +1,35 @@
+                            Installing scx
+
+                                   
+1. Get Sunterlib 0.4 (or the current CVS head) and install it.
+
+2. Configure scx
+
+  Just `cd' to the directory containing this INSTALL file and type
+
+      ./configure
+
+  * Use the --with-scsh-includes switch to specify the path to the
+    include directory of the scsh installation.
+  * Use the --with-scsh-libraries switch to specify the path to the
+    library directory of the scsh installation.
+  * Use the --with-scsh-modules switch to specify the path to the
+    directory where Sunterlib is installed if this directory is not in
+    the scsh library path (See the description of the -ll option in
+    the scsh manual for more information about the library path
+
+3. Build scx by typing
+
+     make
+
+ This will compile the scx binary and the scx image scx.image. The scx
+ binary behaves like an ordinary scsh binary but includes bindings for
+ Xlib and starts the scx.image from the installation directory as
+ default image.
+
+ You may need to specify additional libraries for linking. This can
+ either be done by extending the LIBS variable in the Makefile or by
+ setting the LDFLAGS environment variable as in
+
+    env "LDFLAGS=-lsocket -lnsl" make
+