From b5c507570e3cd941c41adf693b43bcd71815d0ba Mon Sep 17 00:00:00 2001
From: Chris Wanstrath <chris@ozmm.org>
Date: Tue, 17 Feb 2026 07:27:46 -0800
Subject: [PATCH] update readme

---
 README.md | 42 ++++++++++++++++++++++++------------------
 1 file changed, 24 insertions(+), 18 deletions(-)

diff --git a/README.md b/README.md
index d357e44..5afe854 100644
--- a/README.md
+++ b/README.md
@@ -20,30 +20,18 @@ bun link
 
 ## Configure
 
-Set your Anthropic API key:
+Set your Anthropic API key in `~/.env`:
 
-```bash
-export ANTHROPIC_API_KEY=sk-ant-...
+```
+ANTHROPIC_API_KEY=sk-ant-...
 ```
 
-Optionally add a `sandlot.json` to your repo root:
-
-```json
-{
-  "vm": {
-    "cpus": 4,
-    "memory": "8GB",
-    "image": "ubuntu:24.04",
-    "mounts": { "/path/to/deps": "/deps" }
-  },
-  "ai": {
-    "model": "claude-sonnet-4-20250514"
-  }
-}
-```
+This file is loaded automatically on startup. Variables already set in the environment take precedence.
 
 ## Usage
 
+Run all commands from inside a cloned git repo.
+
 ### Start a session
 
 ```bash
@@ -77,3 +65,21 @@ sandlot open <branch>  # re-enter a session's VM
 sandlot stop <branch>  # stop a VM without destroying it
 sandlot rm <branch>    # tear down without merging
 ```
+
+## Project config
+
+Optionally add a `sandlot.json` to your repo root:
+
+```json
+{
+  "vm": {
+    "cpus": 4,
+    "memory": "8GB",
+    "image": "ubuntu:24.04",
+    "mounts": { "/path/to/deps": "/deps" }
+  },
+  "ai": {
+    "model": "claude-sonnet-4-20250514"
+  }
+}
+```