diff --git a/docs/LocalSetupGuide.md b/docs/LocalSetupGuide.md
new file mode 100644
index 000000000..5bc1e41e5
--- /dev/null
+++ b/docs/LocalSetupGuide.md
@@ -0,0 +1,32 @@
+# Guide to local development
+
+## Requirements:
+
+- Python 3.10 or higher + PIP
+- Azure CLI, and an Azure Subscription
+- Visual Studio Code IDE
+
+## Local Setup:
+
+Follow these steps to set up and run the application locally:
+
+### 1. Open the src Folder
+Navigate to the `src` folder of the repository using Visual Studio Code.
+
+### 2. Configure Environment Variables
+- Navigate to the `src` folder and create a `.env` file based on the provided `.env.sample` file.
+- Update the `.env` file with the required values from your Azure resource group in Azure Portal App Service environment variables.
+- Make sure to set APP_ENV to "**dev**" in `.env` file.
+
+### 3. (Optional) Python Virtual Environment
+- Navigate to the `src` folder, create and activate your virtual environment `venv` under `src` folder.
+
+### 4. Start the Application
+- Run `start.cmd` (Windows) or `start.sh` (Linux/Mac) to:
+  - Install backend dependencies.
+  - Install frontend dependencies.
+  - Build the frontend.
+  - Start the backend server.
+
+### 5. Access the Application
+Once the app is running, open your browser and navigate to [http://127.0.0.1:5000](http://127.0.0.1:5000).