diff --git a/README.md b/README.md
index d1c73a8f67..6d731263c6 100644
--- a/README.md
+++ b/README.md
@@ -88,3 +88,12 @@ Prerequisites:
     - Mac OS ([Homebrew](http://brew.sh/)): `brew install libtool`
 
 Run `make binaries`, which creates the Notary Client CLI binary at `bin/notary`.
+Note that `make binaries` assumes a standard Go directory structure, in which
+Notary is checked out to the `src` directory in your `GOPATH`. For example:
+```
+$GOPATH/
+    src/
+        github.com/
+            docker/
+                notary/
+```
\ No newline at end of file