diff --git a/INSTALLING.md b/INSTALLING.md
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@@ -0,0 +1,103 @@
+<!--
+ Licensed to the Apache Software Foundation (ASF) under one
+ or more contributor license agreements.  See the NOTICE file
+ distributed with this work for additional information
+ regarding copyright ownership.  The ASF licenses this file
+ to you under the Apache License, Version 2.0 (the
+ "License"); you may not use this file except in compliance
+ with the License.  You may obtain a copy of the License at
+
+   http://www.apache.org/licenses/LICENSE-2.0
+
+ Unless required by applicable law or agreed to in writing,
+ software distributed under the License is distributed on an
+ "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ KIND, either express or implied.  See the License for the
+ specific language governing permissions and limitations
+ under the License.
+ -->
+
+## Local Development Setup
+
+This section outlines a recommended approach for setting up a local development environment for Apache Airflow on macOS and Linux, primarily using PyEnv for Python version management.
+
+> ⚠️ Avoid using either system-installed Python or Python from Homebrew, as these versions are often labeled `--externally-managed` resulting in restricted dependency installation.
+
+You can use other ways to install Python and airflow. Airflow development setup requires `uv` and if you want to setup environment for development, `uv` is the only supported local development environment setup, because we are using `uv workspace` extensively. See [local virtualenv setup in contributing docs](https://github.com/apache/airflow/blob/main/contributing-docs/07_local_virtualenv.rst) for details.
+
+If you are just installing airflow to run it locally, You can use other ways to set up your Python and virtualenv: `uv` is one of the options (refer to `uv` documentation), but you can also use more traditional tools - for example `pyenv`. Note that it is recommended to install airflow with constraints - at least initially - because this way you can reproducibly install airflow. See [Installation from PyPI](https://airflow.apache.org/docs/apache-airflow/stable/installation/installing-from-pypi.html) for more details.
+
+### ✅ Setup using pyenv:
+
+1. **Install pyenv (macOS and Linux)**:
+
+```bash
+brew install pyenv
+```
+
+(Note: Homebrew is the recommended method on macOS. For Linux, you can typically install pyenv using the `pyenv-installer` script as detailed in the official documentation: [https://github.com/pyenv/pyenv#installation](https://github.com/pyenv/pyenv#installation).)
+
+2. **Install Python**:
+
+```bash
+pyenv install 3.11.9
+pyenv global 3.11.9
+```
+
+3. **Check Python version**:
+
+```bash
+python --version
+```
+
+4. **Create and Activate a Virtual Environment**: Since Apache Airflow requires multiple dependencies, it's a good practice to isolate these dependencies in a virtual environment.
+
+- Create a virtual environment:
+
+```bash
+python -m venv airflow_venv
+```
+
+- Activate the virtual environment:
+
+```bash
+source airflow_venv/bin/activate
+```
+
+5. **Install Apache Airflow**: Apache Airflow is available on PyPI. To install it, you can use the following command in your terminal:
+
+```bash
+pip install apache-airflow==3.0.0 --constraint "https://raw.githubusercontent.com/apache/airflow/constraints-3.0.0/constraints-3.11.txt"
+```
+
+Note that installing with constraints - at least initially - is recommended for reproducible installation. It might sometimes happen that 3rd-party distributions are released and their latest versions break airflow. Using constraints makes the installation reproducible with versions of dependencies that were "frozen" at the time of releasing airflow. Note you have to specify both - airflow version and Python version you are using.
+
+You can also specify additional extras - when you want to install airflow with additional providers:
+
+```bash
+pip install apache-airflow[amazon,google]==3.0.0 --constraint "https://raw.githubusercontent.com/apache/airflow/constraints-3.0.0/constraints-3.11.txt"
+```
+
+6. **Set the AIRFLOW_HOME Environment Variable**: Apache Airflow requires a directory to store configuration files, logs, and other data. Set the AIRFLOW_HOME variable to specify this directory.
+
+- Set the Airflow home directory:
+
+```bash
+export AIRFLOW_HOME=~/airflow
+```
+
+7. **Run Airflow in standalone mode**: Apache Airflow runs several components, like the scheduler, web server, and API server, to manage workflows and show the UI.
+
+- To run Airflow in standalone mode (which will automatically start the required components):
+
+```bash
+airflow standalone
+```
+
+8. **Access the Airflow Web UI**: Once the components are up and running, you can access the Airflow UI through your browser:
+
+- Open your browser and go to:
+
+```text
+http://localhost:8080
+```
diff --git a/README.md b/README.md
index 986fe128c2665..e18d0fa5f7388 100644
--- a/README.md
+++ b/README.md
@@ -58,6 +58,7 @@ Use Airflow to author workflows as directed acyclic graphs (DAGs) of tasks. The
 - [Requirements](#requirements)
 - [Getting started](#getting-started)
 - [Installing from PyPI](#installing-from-pypi)
+- [Installation](#installation)
 - [Official source code](#official-source-code)
 - [Convenience packages](#convenience-packages)
 - [User Interface](#user-interface)
@@ -139,6 +140,7 @@ Documentation for dependent projects like provider distributions, Docker image,
 
 <!-- END Getting started, please keep comment here to allow auto update of PyPI readme.md -->
 <!-- START Installing from PyPI, please keep comment here to allow auto update of PyPI readme.md -->
+
 ## Installing from PyPI
 
 We publish Apache Airflow as `apache-airflow` package in PyPI. Installing it however might be sometimes tricky
@@ -154,7 +156,6 @@ constraints files separately per major/minor Python version.
 You can use them as constraint files when installing Airflow from PyPI. Note that you have to specify
 correct Airflow tag/version/branch and Python versions in the URL.
 
-
 1. Installing just Airflow:
 
 > Note: Only `pip` installation is currently officially supported.
@@ -189,6 +190,11 @@ For information on installing provider distributions, check
 [providers](http://airflow.apache.org/docs/apache-airflow-providers/index.html).
 
 <!-- END Installing from PyPI, please keep comment here to allow auto update of PyPI readme.md -->
+
+## Installation
+
+For comprehensive instructions on setting up your local development environment and installing Apache Airflow, please refer to the [INSTALLING.md](INSTALLING.md) file.
+
 <!-- START Official source code, please keep comment here to allow auto update of PyPI readme.md -->
 ## Official source code
 
diff --git a/generated/PYPI_README.md b/generated/PYPI_README.md
index 47156de1ae729..0f08ce1ab96a1 100644
--- a/generated/PYPI_README.md
+++ b/generated/PYPI_README.md
@@ -93,6 +93,7 @@ the [Airflow Wiki](https://cwiki.apache.org/confluence/display/AIRFLOW/Airflow+I
 
 Documentation for dependent projects like provider distributions, Docker image, Helm Chart, you'll find it in [the documentation index](https://airflow.apache.org/docs/).
 
+
 ## Installing from PyPI
 
 We publish Apache Airflow as `apache-airflow` package in PyPI. Installing it however might be sometimes tricky
@@ -108,7 +109,6 @@ constraints files separately per major/minor Python version.
 You can use them as constraint files when installing Airflow from PyPI. Note that you have to specify
 correct Airflow tag/version/branch and Python versions in the URL.
 
-
 1. Installing just Airflow:
 
 > Note: Only `pip` installation is currently officially supported.