diff --git a/INSTALL.md b/INSTALL.md
index df244ab02..37bea9cbe 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -1,5 +1,4 @@
-Installation Mifos Platform
-===========================
+# Installation Mifos Platform
 
 This file describes how to install mifos platform for use in a production or test environment.
 
@@ -8,13 +7,54 @@ The two ways to get up and running with mifos platform is:
 1. Use Amazon AWS and mifosplatform public AMI to spin up a new instance in the cloud
 2. Manually install the prerequisite software on your own machine, follow setup instructions and use release artifacts to get platform running yourself.
 
-1. Amazon Public AMI
-=================
+## 1. Amazon Public AMI
+
 
 Launch instance <a target="_blank" href="https://console.aws.amazon.com/ec2/home?region=eu-west-1#launchAmi=ami-65e6e011" title="Mifos X Public AMI 1">ami-65e6e011</a>
 
  - Mifos X Public AMI 1
  - Ubuntu11.10, tomcat7.0.21 (with SSL),MySql 5.1.62, Java 1.6_30, Mifos X Platform
 
-2. Manual Installation
-=================
+## 2. Manual Installation
+
+### 2.1 Prerequisite Software
+
+  Before running mifos platform you must have the following software installed:
+  - Oracle Java - JDK/JRE 1.6 (NOT 1.7) (http://www.oracle.com/technetwork/java/javase/downloads/index.html)
+  - Oracle MySQL - (http://dev.mysql.com/downloads/)
+  - Apache Tomcat 7 - (http://tomcat.apache.org/download-70.cgi)
+
+### 2.2 MySQL Setup
+
+  Assumption: MySQL server is now installed.
+  
+  You should know your password for MySQL root user. If you wish you can change it by doing:
+  ```
+  mysqladmin -u root -p 'oldpassword' password newpassword
+  ```
+  The mifosplatform settings default to a mysql root user with username: root, password: mysql
+  
+  If you have never installed mifosplatform before follow section 2.2.1 for first time setup of database, otherwise read section 2.2.2 on database upgrades.
+  
+#### 2.2.1 First Time Database setup
+
+  Mifos platform has support for hosting multiple tenants so we use two database schemas:
+   - *mifosplatform-tenants*: which is responsible for persisting the tenant information which is used when deciding what schema each incoming request in the platform should route to. It acts as a registry which contains the details of all the tenant databases, and their connection information, which is used by MifosX to connect to the appropriate tenant.
+   - *mifostenant-default*: All tenant specific schemas follow the pattern mifostenant-xxxx, out of the box the default schema is used.
+   
+  Step one: create mifosplatform-tenants database
+  ```
+  mysql -uroot -pmysql
+  create database `mifosplatform-tenants`;
+  exit
+  ```
+
+  Step two: 
+
+### 2.3 Tomcat 7 Setup
+
+### 2.4 Release Artifacts
+  
+  
+  
+