diff --git a/README.md b/README.md
index 389d4bd..4f3cbe0 100644
--- a/README.md
+++ b/README.md
@@ -1,14 +1,27 @@
 # Pre-commit hook for Dataform
 
-This repository contains a pre-commit hook that allows you to automate the formatting of SQL and JS code in your Dataform project before each commit. The hook uses the `dataform format` command to format SQLX and JS files.
+This repository contains pre-commit hooks to automate checks for Dataform projects before each commit. 
 
-It also includes a hook that runs `dataform compile` before each commit to ensure that your Dataform project compiles successfully.
+## Requirements
 
-### How to Use
+- **Dataform CLI**: You must have the [Dataform CLI](https://cloud.google.com/dataform/docs/use-dataform-cli) installed locally in your environment for these hooks to function, as they depend on the `dataform` executable.
+- **Node.js**: It's recommended to use Node.js v20 or lower, as newer versions (like v22+) might be incompatible with current Dataform CLI dependencies.
 
-```
+## Available Hooks
+
+### `dataform_format`
+This hook automates the formatting of SQL and JS code in your Dataform project. It runs the `dataform format` command against your `.sqlx` and `.js` files, ensuring consistent code style across your repository.
+
+### `dataform_compile`
+This hook runs the `dataform compile` command before each commit to ensure that your Dataform project compiles successfully. It acts as an early validation step to prevent pushing broken definitions to your repository.
+
+## How to Use
+
+Add the following configuration to your project's `.pre-commit-config.yaml` file:
+
+```yaml
 - repo: https://github.com/devoteamgcloud/pre-commit-dataform
-  rev: [Fill with latest release]
+  rev: [Fill with latest release tag]
   hooks:
     - id: dataform_format
     - id: dataform_compile