diff --git a/README.md b/README.md
index ddf3f4d805..accb7d2e9b 100644
--- a/README.md
+++ b/README.md
@@ -306,7 +306,7 @@ Setting up a dev environment
 Instructions that have been verified to work on Ubuntu 12.10,
 
 ```bash
-sudo apt-get -y install lxc curl xz-utils golang git
+sudo apt-get -y install lxc curl xz-utils golang git mercurial
 
 export GOPATH=~/go/
 export PATH=$GOPATH/bin:$PATH