diff --git a/INSTALL b/INSTALL
index f28be4ce..2e9c86e3 100644
--- a/INSTALL
+++ b/INSTALL
@@ -35,6 +35,45 @@ libpq-fe.h: No such file or directory
   include_dirs variable (and note that a working pg_config is better.)
 
 
+Running the test suite
+======================
+
+The included Makefile allows to run all the tests included in the
+distribution. Just use:
+
+    make
+    make runtests
+
+The tests are run against a database called psycopg2_test on unix socket
+and standard port. You can configure a different database to run the test
+by setting the environment variables:
+
+- PSYCOPG2_TESTDB
+- PSYCOPG2_TESTDB_HOST
+- PSYCOPG2_TESTDB_PORT
+- PSYCOPG2_TESTDB_USER
+
+The database should be created before running the tests.
+
+The standard Python unittest is used to run the tests. But if unittest2 is
+found it will be used instead, with the result of having more informations
+about skipped tests.
+
+
+Building the documentation
+==========================
+
+In order to build the documentation included in the distribution, use
+
+    make env
+    make docs
+
+The first command will install all the dependencies (Sphinx, Docutils) in
+an 'env' directory in the project tree. The second command will build both
+the html format (in the 'doc/html' directory) and in plain text
+(doc/psycopg2.txt)
+
+
 Using setuptools and EasyInstall
 ================================