diff --git a/README.rst b/README.rst
index e19e4ae6e..b06d82746 100644
--- a/README.rst
+++ b/README.rst
@@ -11,11 +11,11 @@ Selenium 2 (WebDriver) library for Robot Framework
 Introduction
 ------------
 
-Selenium2Library is a web testing library for Robot Framework
+Selenium2Library is a web testing library for `Robot Framework`_
 that leverages the `Selenium 2 (WebDriver)`_ libraries from the
 Selenium_ project.
 
-It is modeled after (and forked from) the SeleniumLibrary_ library, 
+It is modeled after (and forked from) the SeleniumLibrary_ library,
 but re-implemented to use Selenium 2 and WebDriver technologies.
 
 - More information about this library can be found on the Wiki_ and in the `Keyword Documentation`_.
@@ -26,10 +26,73 @@ but re-implemented to use Selenium 2 and WebDriver technologies.
 Installation
 ------------
 
-You can install Selenium2Library using pip, with the following command
+Using ``pip``
+'''''''''''''
+
+The recommended installation method is using
+`pip <http://pip-installer.org>`__::
 
     pip install robotframework-selenium2library
 
+The main benefit of using ``pip`` is that it automatically installs all
+dependencies needed by the library. Other nice features are easy upgrading
+and support for un-installation::
+
+    pip install --upgrade robotframework-selenium2library
+    pip uninstall robotframework-selenium2library
+
+Notice that using ``--upgrade`` above updates both the library and all
+its dependencies to the latest version. If you want, you can also install
+a specific version or upgrade only the Selenium tool used by the library::
+
+    pin install robotframework-selenium2library==1.4.1
+    pip install --upgrade selenium
+    pip install selenium==2.34
+
+Proxy configuration
+'''''''''''''''''''
+
+If you are behind a proxy, you can use ``--proxy`` command line option
+or set ``http_proxy`` and/or ``https_proxy`` environment variables to
+configure ``pip`` to use it. If you are behind an authenticating NTLM proxy,
+you may want to consider installing `CNTML <http://cntlm.sourceforge.net>`__
+to handle communicating with it.
+
+For more information about ``--proxy`` option and using pip with proxies
+in general see:
+
+- http://pip-installer.org/en/latest/usage.html
+- http://stackoverflow.com/questions/9698557/how-to-use-pip-on-windows-behind-an-authenticating-proxy
+- http://stackoverflow.com/questions/14149422/using-pip-behind-a-proxy
+
+Manual installation
+'''''''''''''''''''
+
+If you do not have network connection or cannot make proxy to work, you need
+to resort to manual installation. This requires installing both the library
+and its dependencies yourself.
+
+1) Make sure you have `Robot Framework installed
+   <http://code.google.com/p/robotframework/wiki/Installation>`__.
+
+2) Download source distributions (``*.tar.gz``) for the library and its
+   dependencies:
+
+   - https://pypi.python.org/pypi/robotframework-selenium2library
+   - https://pypi.python.org/pypi/selenium
+   - https://pypi.python.org/pypi/decorator
+
+3) Extract each source distribution to a temporary location.
+
+4) Go each created directory from the command line and install each project
+   using::
+
+       python setup.py install
+
+If you are on Windows, and there are Windows installers available for
+certain projects, you can use them instead of source distributions.
+Just download 32bit or 64bit installer depending on your system,
+double-click it, and follow the instructions.
 
 Directory Layout
 ----------------
@@ -47,7 +110,7 @@ src/
 Usage
 -----
 
-To write tests with Robot Framework and Selenium2Library, 
+To write tests with Robot Framework and Selenium2Library,
 Selenium2Library must be imported into your Robot test suite.
 See `Robot Framework User Guide`_ for more information.
 
@@ -63,7 +126,7 @@ using Selenium2Library. To run the demo, run::
 E.g.::
 
 	python demo/rundemo.py demo/login_tests
-	
+
 Getting Help
 ------------
 The `user group for Robot Framework`_ is the best place to get help. Consider including in the post:
@@ -72,6 +135,7 @@ The `user group for Robot Framework`_ is the best place to get help. Consider in
 - Version number of Selenium2Library, Robot Framework, and Selenium
 - Traceback or other debug output containing error information
 
+.. _Robot Framework: http://robotframework.org
 .. _Selenium: http://selenium.openqa.org
 .. _Selenium 2 (WebDriver): http://seleniumhq.org/docs/03_webdriver.html
 .. _SeleniumLibrary: http://code.google.com/p/robotframework-seleniumlibrary/