diff --git a/documents/DeploymentGuide.md b/documents/DeploymentGuide.md
index 90a491b73..ddc86aed1 100644
--- a/documents/DeploymentGuide.md
+++ b/documents/DeploymentGuide.md
@@ -194,6 +194,14 @@ Once you've opened the project in [Codespaces](#github-codespaces), [Dev Contain
 2. **Deleting Resources After a Failed Deployment**  
 
      - Follow steps in [Delete Resource Group](./DeleteResourceGroup.md) if your deployment fails and/or you need to clean up the resources.
+  
+## Environment configuration for local development & debugging
+> Set APP_ENV in your .env file to control Azure authentication.Set the environment variable to dev to use Azure CLI credentials, or to prod to use Managed Identity for production. **Ensure you're logged in via az login when using dev in local**.
+To configure your environment:
+- Navigate to the `src\api` folder.
+- Create a `.env` file based on the `.env.sample` file.
+- Fill in the `.env` file using deployment output or the Azure Portal under "Deployments" in your resource group.
+- Ensure that `APP_ENV` is set to "**dev**".     
 
 ## For Local Debugging