diff --git a/README.md b/README.md
index f055961e..4ae9be15 100644
--- a/README.md
+++ b/README.md
@@ -49,7 +49,13 @@ to setup your local Terraform to use your local version rather than the registry
2. Run `terraform init` and observe a warning like `Warning: Provider development overrides are in effect`
4. Run `make build` to build the provider binary, which Terraform will try locate and execute
5. All local Terraform runs will now use your local provider!
-6. _**NOTE**: we vendor in this provider into `github.com/coder/coder`, so if you're testing with a local clone then you should also run `go mod edit -replace github.com/coder/terraform-provider-coder=/path/to/terraform-provider-coder` in your clone._
+6. **NOTE**: We vendor this provider into `github.com/coder/coder`, so if you're testing with a local clone, make sure to run the following in your local clone of `coder`:
+ ```console
+ go mod edit -replace github.com/coder/terraform-provider-coder/v2=/path/to/terraform-provider-coder
+ go mod tidy
+ ```
+ ⚠️ Be sure to include `/v2` in the module path as it needs to match the version declared in the provider’s `go.mod`.
+
#### Terraform Acceptance Tests
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