diff --git a/testnet-faucet/.env.sample b/testnet-faucet/.env.sample
new file mode 100644
index 0000000000..7048202d6b
--- /dev/null
+++ b/testnet-faucet/.env.sample
@@ -0,0 +1,4 @@
+validatorAddress=
+mnemonic=
+testnetURL1=
+accountAddress=
\ No newline at end of file
diff --git a/testnet-faucet/README.md b/testnet-faucet/README.md
index 1bb4643088..a5ab108b98 100644
--- a/testnet-faucet/README.md
+++ b/testnet-faucet/README.md
@@ -4,6 +4,10 @@
 
 Run `yarn install`
 
+### Add environment variables
+
+Create a `.env` file in the root of the project. Copy the keys from the `.env.sample` file (found in the project root) into the `.env` file and and in the required values`
+
 ### Run development mode
 
 Run `yarn dev`