diff --git a/README.markdown b/README.markdown
index 8a7d719..264a180 100644
--- a/README.markdown
+++ b/README.markdown
@@ -3,16 +3,34 @@ GemTemplate
 
 A gem template for new projects.
 
-Setup
------
+Requirements
+------------
 
 <pre>
-git clone git://github.com/winton/gem_template.git my_project
-cd my_project
-rake setup
-git remote add origin git@github.com:winton/my_project.git
+sudo gem install stencil --source http://gemcutter.org
 </pre>
 
-A project wide find-replace occurs on file names and contents.
+Setup the template
+------------------
 
-Edit <code>gemspec.rb</code> and <code>MIT-LICENSE</code>, and your project is ready for its first commit.
\ No newline at end of file
+You only have to do this once.
+
+<pre>
+git clone git@github.com:winton/gem_template.git
+cd gem_template
+stencil
+</pre>
+
+Setup a new project
+-------------------
+
+Do this for every new project.
+
+<pre>
+mkdir my_project
+git init
+stencil gem_template
+rake rename
+</pre>
+
+The last command does a find-replace (gem\_template -> my\_project) on files and filenames.
\ No newline at end of file
diff --git a/Rakefile b/Rakefile
index 48b3814..2380ae3 100644
--- a/Rakefile
+++ b/Rakefile
@@ -24,10 +24,9 @@ Rake::GemPackageTask.new(GEM_SPEC) do |pkg|
   pkg.gem_spec = GEM_SPEC
 end
 
-desc "Setup project"
-task :setup do
-  name = File.basename(Dir.pwd)
-  `rm -Rf .git`
+desc "Rename project"
+task :rename do
+  name = ENV['NAME'] || File.basename(Dir.pwd)
   begin
     dir = Dir['**/gem_template*']
     from = dir.pop
@@ -43,7 +42,6 @@ task :setup do
       `sed -i "" 's/gem_template/#{name}/g' #{path}`
     end
   end
-  `git init`
 end
 
 desc "Run specs"