diff --git a/.github/CONTRIBUTING.md b/.github/CONTRIBUTING.md
index 9096214..1837715 100644
--- a/.github/CONTRIBUTING.md
+++ b/.github/CONTRIBUTING.md
@@ -60,3 +60,12 @@ Before merging a PR, check:
 - Backend should keep controllers thin and services explicit.
 - AI logic should be explainable, deterministic where possible, and upgradeable to model-backed flows later.
 - UI/UX changes should preserve a coherent system, not one-off screens.
+
+### Development Setup Verification
+
+After setting up your development environment, verify that all services are working correctly:
+
+- **Frontend**: `npm run dev` and check http://localhost:3000
+- **Backend**: `npm run start:server` and check http://localhost:8000/health
+- **ML Worker**: `cd ml-worker && pytest` (requires Python 3.9+)
+- **Mobile**: `cd mobile && npm run build` (requires Android Studio for Android builds)
diff --git a/README.md b/README.md
index 8e3598c..37edca4 100644
--- a/README.md
+++ b/README.md
@@ -54,37 +54,46 @@ The app should stay simple and cheap to run:
 - shared mobile HTTP client with request timeouts
 - backend indexes, cacheable read paths, and read-only transactions
 
-## Run Locally
+## Local Development Setup
 
 ### Prerequisites
 
-- Node.js 16+ for frontend
-- Java 17+ for backend
-- Python 3.11+ for ML worker
-
-### Frontend
-
-```bash
-cd app
-npm start
-```
-
-### Backend
-
-```bash
-cd backend
-mvn spring-boot:run
-```
-
-### OCR worker tests
-
-```bash
-cd ml-worker
-python -m pip install -e ".[dev]"
-pytest
-```
-
-The same worker test command runs in GitHub Actions for pull requests that touch `ml-worker` or the worker workflow.
+Before you begin, ensure you have the following installed:
+- Node.js 16+ (for the Expo frontend)
+- Java 17+ (for the Spring Boot backend)
+- Python 3.11+ (for the ML worker)
+- Android Studio or Xcode (for mobile emulation)
+
+### Setup Steps
+
+1. **Frontend (Expo App)**
+   ```bash
+   cd app
+   npm install
+   npm start
+   ```
+   This will start the Expo development server. You can then open the app in an emulator or on a physical device.
+
+2. **Backend (Spring Boot)**
+   ```bash
+   cd backend
+   mvn spring-boot:run
+   ```
+   The backend will start on `http://localhost:8080`. You can verify it's running by visiting `http://localhost:8080/actuator/health`.
+
+3. **ML Worker (Python)**
+   ```bash
+   cd ml-worker
+   python -m pip install -e ".[dev]"
+   python worker.py
+   ```
+   The worker will start processing tasks from the backend queue.
+
+### Verification
+
+- Frontend: Open `http://localhost:19002` to see the Expo DevTools
+- Backend: Visit `http://localhost:8080/actuator/health` to confirm the backend is healthy
+- ML Worker: Check the terminal where you started the worker for processing logs
 
 ## Notes