diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..38c0777
--- /dev/null
+++ b/.env.example
@@ -0,0 +1 @@
+NEON_API_KEY=...
diff --git a/.gitignore b/.gitignore
index 8ac80aa..ada9c75 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,5 @@ build/**
 dist/**
 Pipfile
 Pipfile.lock
+.env
+venv/
diff --git a/Makefile b/Makefile
index 6715875..759621f 100644
--- a/Makefile
+++ b/Makefile
@@ -1,8 +1,9 @@
 test:
-	pytest --record-mode=none tests/
+	set -a && source .env && set +a; pytest --record-mode=none tests/
 
 fmt:
 	ruff format .
+
 ci: 
 	pytest --cov=neon_client --record-mode=none tests/
 
diff --git a/README.md b/README.md
index b73048c..d8a813c 100644
--- a/README.md
+++ b/README.md
@@ -113,6 +113,7 @@ This will install all the necessary dependencies for development.
 To run the tests, use the following command:
 
 ```bash
+# set up a .env file with your API key as per `.env.example`
 $ make test
 ```