diff --git a/vm/LXC_README.txt b/vm/LXC_README.txt
new file mode 100644
index 000000000..5fa87fcc2
--- /dev/null
+++ b/vm/LXC_README.txt
@@ -0,0 +1,28 @@
+== Installing pan.do/ra inside LXC ==
+
+1) Install lxc on the host (Ubuntu 12.04 or later):
+
+    $ sudo apt-get install lxc
+
+2) Create a new container, use other name if installing multiple
+
+    $ sudo lxc-create -n pandora-dev -t ubuntu -- -r precise
+
+3) Install pan.do/ra in container
+
+    $ sudo lxc-start -n pandora-dev
+
+    Now login as ubuntu/ubuntu and run the following commands:
+
+    $ sudo su
+    $ cd /root
+    $ curl 'https://wiki.0x2620.org/browser/pandora/vm/firstboot.sh?format=txt' > firstboot.sh
+    $ chmod +x firstboot
+    $ apt-get -y install avahi-daemon
+    $ sed -i s/ubuntu/pandora/g /etc/passwd /etc/shadow /etc/group
+    $ mv /home/ubuntu /home/pandora
+    $ echo "pandora:pandora" | chpasswd
+    $ locale-gen en_US.UTF-8
+    $ dpkg-reconfigure locales
+    $ ./firstboot.sh
+