diff --git a/Gemfile b/Gemfile
index 4f1f08602c4..d7b95f7d5b9 100644
--- a/Gemfile
+++ b/Gemfile
@@ -9,7 +9,7 @@ gem "kaminari"
 gem "haml-rails"
 gem "jquery-rails"
 gem "grit", :git => "https://github.com/gitlabhq/grit.git"
-gem "gitolite", :git => "https://github.com/gitlabhq/gitolite.git"
+gem "gitolite", :git => "https://github.com/gitlabhq/gitolite-client.git"
 gem "carrierwave"
 gem "six"
 gem "therubyracer"
diff --git a/Gemfile.lock b/Gemfile.lock
index 59c3b5e2a47..dc27b921a06 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -5,7 +5,7 @@ GIT
     annotate (2.4.1.beta1)
 
 GIT
-  remote: https://github.com/gitlabhq/gitolite.git
+  remote: https://github.com/gitlabhq/gitolite-client.git
   revision: 36dabd226caa40ff052677719adaacbfe667b36c
   specs:
     gitolite (0.0.3.alpha)
diff --git a/README.md b/README.md
index b95e7c8a23e..8cbec9e388d 100644
--- a/README.md
+++ b/README.md
@@ -57,10 +57,14 @@ Install gitolite (with repo umask 0007), edit `config/gitlab.yml` and start serv
 bundle exec rails s -e production
 ```
 
-### Create git user 
+
+## Install Gitolite
+
 
 ```bash
 
+
+# create git user
 sudo adduser \
   --system \
   --shell /bin/sh \
@@ -76,9 +80,28 @@ usermod -a -G git gitlabhq_user_name
 
 ```
 
-## Install Gitolite
+### !!! IMPORTANT !!! Gitolite should have repository umask 0007 so users from git group has read/write access to repo
 
-### !!! IMPORTANT !!! Gitolite umask should be 0007 so users from git group has read/write access to repo
+```bash
+
+# copy your pub key to git home
+cp ~/.ssh/id_rsa.pub /home/git/rails.pub
+
+# enter user git
+sudo -i -u git 
+
+# clone gitolite
+git clone git://github.com/gitlabhq/gitolite
+
+# install gitolite
+gitolite/src/gl-system-install
+
+
+# Setup (Dont forget to set umask as 0007!!)
+gl-setup ~/rails.pub
+
+
+```
 
 
 ## Install ruby 1.9.2