diff --git a/.contentful.json.sample b/.contentful.json.sample
deleted file mode 100644
index 6a2368fa..00000000
--- a/.contentful.json.sample
+++ /dev/null
@@ -1,4 +0,0 @@
-{
-  "spaceId": "...",
-  "accessToken": "..."
-}
diff --git a/.env.sample b/.env.sample
new file mode 100644
index 00000000..c1a9120a
--- /dev/null
+++ b/.env.sample
@@ -0,0 +1,2 @@
+CONTENTFUL_SPACE_ID='...'
+CONTENTFUL_ACCESS_TOKEN='...'
diff --git a/.gitignore b/.gitignore
index 502e9e44..6ff9ed17 100644
--- a/.gitignore
+++ b/.gitignore
@@ -66,4 +66,8 @@ public
 # contentful config file
 .contentful.json
 # Local Netlify folder
-.netlify
\ No newline at end of file
+.netlify
+
+# enviornment files created by `npm run setup`
+.env.*
+!.env.sample
\ No newline at end of file
diff --git a/README.md b/README.md
index 7d771822..7d4de5f7 100644
--- a/README.md
+++ b/README.md
@@ -35,9 +35,9 @@ $ gatsby new contentful-starter-blog https://github.com/contentful/starter-gatsb
 
 This project comes with a Contentful setup command `npm run setup`.
 
-This command will ask you for a space ID, and access tokens for the Contentful Management and Delivery API and then import the needed content model into the space you define and write a config file (`./.contentful.json`).
+This command will ask you for a space ID, and access tokens for the Contentful Management and Delivery API and then import the needed content model into the space you define and write a config files (`.env.production` and `.enf.development`).
 
-`npm run setup` automates that for you but if you want to do it yourself rename `.contentful.json.sample` to `.contentful.json` and add your configuration in this file.
+`npm run setup` automates that for you but if you want to do it yourself rename `.env.sample` to `.env.development` and add your configuration in this file.
 
 ## Crucial Commands