updated readme to reflect .env and testing changes

Author: erik-sn

README.rst

@@ -6,15 +6,31 @@ A `RESTful <https://en.wikipedia.org/wiki/Representational_state_transfer>`_ API
 Getting Started
 ---------------
 
-To run this project, you will need to install `Docker <https://docs.docker.com/>`_ on your machine.
 
-Once Docker is installed and running, enter the following command from within the project folder to start the web and database servers:
+
+First create a `.env` file in the root directory that contains necessary environment variables:
+
+.. code::
+
+    # python/django
+    PYTHONUNBUFFERED=1
+    DJANGO_SETTINGS_MODULE=api.config.settings
+    SECRET_KEY=**Django Secret Key**
+    DEBUG=True
+
+    # database
+    DATABASE_URL=postgres://postgres@db/postgres
+
+
+To run this project, you will need to install `Docker <https://docs.docker.com/>`_ on your machine. Once Docker is installed and running and your `.env` file is defined,  enter the following command from within the
+project folder to start the web and database servers:
 
 .. code::
 
   docker-compose up
 
-This will take several minutes the first time you run it as it needs to download and install all the necessary components into a docker container.
+This will take several minutes the first time you run it as it needs to download and install all the necessary
+components into a docker container.
 
 If successful, you should see the following messages at the end of the installation and configuration:
 
@@ -32,4 +48,16 @@ On OS X, you may need to use the IP address of your docker virtual machine rathe
 
     docker-machine ip default
 
-If you installed the Kitematic tool, you should also see your new containers in its list and you can start and stop them from there rather than the command line from now on.
+If you installed the Kitematic tool, you should also see your new containers in its list and you can start and stop them
+from there rather than the command line from now on.
+
+
+Running Tests
+-------------
+
+Make sure you have created a .env file as above. To run all tests:
+
+.. code::
+
+  python manage.py test --settings=api.config.test_settings
+