+```
+mkdir ~/nominatim-project
+cd ~/nominatim-project
+```
+
+In the following, we refer to the project directory as `$PROJECT_DIR`. To be
+able to copy&paste instructions, you can export the appropriate variable:
+
+```
+export PROJECT_DIR=~/nominatim-project
+```
+
+The Nominatim tool assumes per default that the current working directory is
+the project directory but you may explicitly state a different directory using
+the `--project-dir` parameter. The following instructions assume that you run
+all commands from the project directory.
+
+!!! tip "Migration Tip"
+
+ Nominatim used to be run directly from the build directory until version 3.6.
+ Essentially, the build directory functioned as the project directory
+ for the database installation. This setup still works and can be useful for
+ development purposes. It is not recommended anymore for production setups.
+ Create a project directory that is separate from the Nominatim software.