diff --git a/docs/getting-started/setup.md b/docs/getting-started/setup.md
index 2fc89762c..cf8288b09 100644
--- a/docs/getting-started/setup.md
+++ b/docs/getting-started/setup.md
@@ -10,6 +10,8 @@ personal computer. Since Vagrant works with virtual machines, there will be no
 "cruft" left over if you ever wish to stop (no extraneous software, files, etc)
 as Vagrant will handle destroying the virtual machine if you so choose.
 
+## Vagrant Project Setup
+
 The first step for any project which uses Vagrant is to mark the root directory
 and setup the basic required files. Vagrant provides a handy command-line utility
 for just that. In the terminal transcript below, we create the directory for our
@@ -23,4 +25,18 @@ $ vagrant init
 
 `vagrant init` creates an initial Vagrantfile. For now, we'll leave this Vagrantfile
 as-is, but it will be used extensively in future steps to configure our virtual
-machine.
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+machine.
+
+## Rails Project Setup
+
+With Vagrant now ready for the given directory, lets add rails to it. In the
+same directory run the `rails` command:
+
+{% highlight bash %}
+$ rails .
+{% endhighlight %}
+
+This creates a rails-app in the current directory. We'll leave it as-is.
+
+The above setups required (rails and vagrant) could have been run in any order.
+Vagrant can easily be initialized in already-existing project folders.
\ No newline at end of file