diff --git a/lib/phpunit/readme.md b/lib/phpunit/readme.md
index 0bf70c47442..69bcdf08834 100644
--- a/lib/phpunit/readme.md
+++ b/lib/phpunit/readme.md
@@ -4,50 +4,53 @@ PHPUnit testing support in Moodle
 
 Documentation
 -------------
-* [Moodle Dev wiki](http://docs.moodle.org/dev/PHPUnit)
+* [Moodle PHPUnit integration](http://docs.moodle.org/dev/PHPUnit)
 * [PHPUnit online documentation](http://www.phpunit.de/manual/current/en/)
 * [Composer dependency manager](http://getcomposer.org/)
 
 
 Composer installation
 ---------------------
-Composer is a new dependency manager for PHP projects.
+Composer is a dependency manager for PHP projects.
 It installs PHP libraries into /vendor/ subdirectory inside your moodle dirroot.
 
-1. install Composer - http://getcomposer.org/doc/00-intro.md
-2. go to your moodle dirroot and execute `php composer.phar install --dev`
+1. install Composer - [http://getcomposer.org/doc/00-intro.md](http://getcomposer.org/doc/00-intro.md)
+2. install PHUnit and dependencies - go to your Moodle dirroot and execute `php composer.phar install --dev`
 
 
-PEAR installation (not recommended)
------------------------------------
-PEAR is a framework and distribution system for reusable PHP components.
-The packages installed via PEAR are available in all PHP projects.
+Configure your server
+---------------------
+You need to create a new dataroot directory and specify a separate database prefix for the test environment,
+see config-dist.php for more information.
 
-1. install PEAR package manager - see [PEAR Manual](http://pear.php.net/manual/en/installation.php)
-2. install PHPUnit package and phpunit/DbUnit extension - see [PHPUnit installation documentation](http://www.phpunit.de/manual/current/en/installation.html)
-3. edit main config.php - add `$CFG->phpunit_prefix` and `$CFG->phpunit_dataroot` - see config-dist.php
-4. execute `php admin/tool/phpunit/cli/init.php` to initialise the test environment, repeat it after every upgrade or installation of plugins
+* add `$CFG->phpunit_prefix = 'phpu_';` to your config.php file
+* and `$CFG->phpunit_dataroot = '/path/to/phpunitdataroot';` to your config.php file
 
 
-Test execution
+Initialise the test environment
+-------------------------------
+Before first execution and after every upgrade the PHPUnit test environment needs to be initialised,
+this command also builds the phpunit.xml configuration files.
+
+* execute `php admin/tool/phpunit/cli/init.php`
+
+
+Execute tests
 --------------
-* execute `vendor/bin/phpunit` (or `phpunit` if you use PEAR) from dirroot directory
+* execute `vendor/bin/phpunit` from dirroot directory
 * you can execute a single test case class using class name followed by path to test file `vendor/bin/phpunit core_phpunit_basic_testcase lib/tests/phpunit_test.php`
 * it is also possible to create custom configuration files in xml format and use `vendor/bin/phpunit -c mytestsuites.xml`
 
 
 How to add more tests?
 ----------------------
-1. create `tests` directory in your plugin
-2. add `local/mytest/tests/my_test.php` file with `local_my_testcase` class that extends `basic_testcase` or `advanced_testcase`
+1. create `tests/` directory in your add-on
+2. add test file, for example `local/mytest/tests/my_test.php` file with `local_my_testcase` class that extends `basic_testcase` or `advanced_testcase`
 3. add some test_*() methods
-4. execute your new test case `phpunit local_my_testcase local/mytest/tests/my_test.php`
+4. execute your new test case `vendor/bin/phpunit local_my_testcase local/mytest/tests/my_test.php`
 5. execute `php admin/tool/phpunit/cli/init.php` to get the plugin tests included in main phpunit.xml configuration file
 
 
-How to convert existing tests?
-------------------------------
-1. create new test file in `xxx/tests/yyy_test.php`
-2. copy contents of the old test file
-3. replace `extends UnitTestCase` with `extends basic_testcase`
-4. fix setUp(), tearDown(), asserts, etc.
+Windows support
+---------------
+* use `\` instead of `/` in paths in examples above
\ No newline at end of file