diff --git a/README.md b/README.md
index b12f8c4..f6fc973 100644
--- a/README.md
+++ b/README.md
@@ -4,35 +4,35 @@
 [![License](https://img.shields.io/pypi/l/gosling.svg?color=green)](https://github.com/higlass/higlass-widget/raw/main/LICENSE)
 [![Open In Colab](https://colab.research.google.com/assets/colab-badge.svg)](https://colab.research.google.com/github/higlass/higlass-widget/blob/main/notebooks/Widget.ipynb)
 
-
 ```
 pip install higlass-widget
 ```
 
 ### Development
 
-```bash
-pip install -e .
-```
-
-If you are using the classic Jupyter Notebook you need to install the nbextension:
+This project uses [`hatch`](https://github.com/pypa/hatch), which installs and sync
+all dependencies from `pyproject.toml` automatically.
 
-```bash
-jupyter nbextension install --py --symlink --sys-prefix higlass_widget
-jupyter nbextension enable --py --sys-prefix higlass_widget
+```sh
+hatch shell
 ```
 
-Note for developers:
+Alternatively, you can create and manage your own virtual environments and install
+an editable version of `higlass-widget`:
 
-- the `-e` pip option allows one to modify the Python code in-place. Restart the kernel in order to see the changes.
-- the `--symlink` argument on Linux or OS X allows one to modify the JavaScript code in-place. This feature is not available with Windows.
+```sh
+pip install -e ".[dev]"
+```
 
-For developing with JupyterLab:
+Finally, you can now run the notebooks with:
 
-```
-jupyter labextension develop --overwrite higlass_widget
+```sh
+jupyterlab
 ```
 
+`higlass_widget.HiGlassWidget` is built with [`anywidget`](https://github.com/manzt/anywidget).
+You can edit the contents of `higlass_widget/widget.js` and changes will be reflected automatically
+in your active Jupyter notebook.
 
 ### Release
 
diff --git a/pyproject.toml b/pyproject.toml
index be2342f..0ea04b6 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -20,7 +20,8 @@ dependencies = [
 dev = [
     "black[jupyter]",
     "ruff",
-    "jupyterlab"
+    "jupyterlab",
+    "watchfiles",
 ]
 
 [project.urls]