diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
new file mode 100644
index 00000000..20721a0f
--- /dev/null
+++ b/CONTRIBUTING.md
@@ -0,0 +1,59 @@
+# Contributing
+
+Thanks for your interest in improving the PostHog Python SDK.
+
+## Commit signing
+
+This repo requires all commits to be signed. To configure commit signing, see the [PostHog handbook](https://posthog.com/handbook/engineering/security#commit-signing).
+
+## Testing locally
+
+We recommend using [uv](https://docs.astral.sh/uv/).
+
+1. Create a virtual environment:
+   - `uv venv env`
+   - or `python3 -m venv env`
+2. Activate it:
+   - `source env/bin/activate`
+3. Install the package in editable mode with development and test dependencies:
+   - `uv sync --extra dev --extra test`
+   - or `pip install -e ".[dev,test]"`
+4. Install pre-commit hooks:
+   - `pre-commit install`
+5. Run the test suite:
+   - `make test`
+6. Run a specific test if needed:
+   - `pytest -k test_no_api_key`
+
+## Recommended `uv` workflow
+
+```bash
+uv python install 3.12
+uv python pin 3.12
+uv venv
+source .venv/bin/activate
+uv sync --extra dev --extra test
+pre-commit install
+make test
+```
+
+## Running locally
+
+Assuming you have a [local version of PostHog](https://posthog.com/docs/developing-locally) running, you can run `python3 example.py` to see the library in action.
+
+## Testing changes locally with the PostHog app
+
+Run `make prep_local` to create a sibling folder named `posthog-python-local`. You can then import it into the PostHog app by changing `pyproject.toml` like this:
+
+```toml
+dependencies = [
+    ...
+    "posthoganalytics" #NOTE: no version number
+    ...
+]
+...
+[tools.uv.sources]
+posthoganalytics = { path = "../posthog-python-local" }
+```
+
+This lets you test SDK changes fully locally inside the PostHog app stack. It mainly takes care of the `posthog -> posthoganalytics` module renaming. Re-run `make prep_local` each time you make a change, and then run `uv sync --active` in the PostHog app project.
diff --git a/README.md b/README.md
index e873cab3..db066c8a 100644
--- a/README.md
+++ b/README.md
@@ -20,52 +20,6 @@ Please see the [Python integration docs](https://posthog.com/docs/integrations/p
 | 7.0.0 - 7.0.1 | 3.10, 3.11, 3.12, 3.13       | Dropped Python 3.9 support |
 | 4.0.1 - 6.x   | 3.9, 3.10, 3.11, 3.12, 3.13  | Python 3.9+ required       |
 
-## Development
+## Contributing
 
-This repo requires all commits to be signed. To configure commit signing, see the [PostHog handbook](https://posthog.com/handbook/engineering/security#commit-signing).
-
-### Testing Locally
-
-We recommend using [uv](https://docs.astral.sh/uv/). It's super fast.
-
-1. Run `uv venv env` (creates virtual environment called "env")
-   - or `python3 -m venv env`
-2. Run `source env/bin/activate` (activates the virtual environment)
-3. Run `uv sync --extra dev --extra test` (installs the package in develop mode, along with test dependencies)
-   - or `pip install -e ".[dev,test]"`
-4. you have to run `pre-commit install` to have auto linting pre commit
-5. Run `make test`
-6. To run a specific test do `pytest -k test_no_api_key`
-
-## PostHog recommends `uv` so...
-
-```bash
-uv python install 3.12
-uv python pin 3.12
-uv venv
-source env/bin/activate
-uv sync --extra dev --extra test
-pre-commit install
-make test
-```
-
-### Running Locally
-
-Assuming you have a [local version of PostHog](https://posthog.com/docs/developing-locally) running, you can run `python3 example.py` to see the library in action.
-
-### Testing changes locally with the PostHog app
-
-You can run `make prep_local`, and it'll create a new folder alongside the SDK repo one called `posthog-python-local`, which you can then import into the posthog project by changing pyproject.toml to look like this:
-
-```toml
-dependencies = [
-    ...
-    "posthoganalytics" #NOTE: no version number
-    ...
-]
-...
-[tools.uv.sources]
-posthoganalytics = { path = "../posthog-python-local" }
-```
-
-This'll let you build and test SDK changes fully locally, incorporating them into your local posthog app stack. It mainly takes care of the `posthog -> posthoganalytics` module renaming. You'll need to re-run `make prep_local` each time you make a change, and re-run `uv sync --active` in the posthog app project.
+See [CONTRIBUTING.md](CONTRIBUTING.md) for local setup, test, and development workflow instructions.
diff --git a/sdk_compliance_adapter/CONTRIBUTING.md b/sdk_compliance_adapter/CONTRIBUTING.md
new file mode 100644
index 00000000..f6ef9ef3
--- /dev/null
+++ b/sdk_compliance_adapter/CONTRIBUTING.md
@@ -0,0 +1,44 @@
+# Contributing
+
+This package contains the PostHog Python SDK compliance adapter used with the PostHog SDK Test Harness.
+
+## Running tests
+
+Tests run automatically in CI via GitHub Actions.
+
+### Locally with Docker Compose
+
+Run the full compliance suite from the `sdk_compliance_adapter` directory:
+
+```bash
+docker-compose up --build --abort-on-container-exit
+```
+
+This will:
+
+1. Build the Python SDK adapter
+2. Pull the test harness image
+3. Run all compliance tests
+4. Show the results
+
+### Manually with Docker
+
+```bash
+# Create network
+docker network create test-network
+
+# Build and run adapter
+docker build -f sdk_compliance_adapter/Dockerfile -t posthog-python-adapter .
+docker run -d --name sdk-adapter --network test-network -p 8080:8080 posthog-python-adapter
+
+# Run test harness
+docker run --rm \
+  --name test-harness \
+  --network test-network \
+  ghcr.io/posthog/sdk-test-harness:latest \
+  run --adapter-url http://sdk-adapter:8080 --mock-url http://test-harness:8081
+
+# Cleanup
+docker stop sdk-adapter && docker rm sdk-adapter
+docker network rm test-network
+```
diff --git a/sdk_compliance_adapter/README.md b/sdk_compliance_adapter/README.md
index 4b96ad1f..5cd730c3 100644
--- a/sdk_compliance_adapter/README.md
+++ b/sdk_compliance_adapter/README.md
@@ -9,44 +9,9 @@ This is a simple Flask app that:
 2. Exposes a REST API for the test harness to control
 3. Tracks internal SDK state for test assertions
 
-## Running Tests
+## Contributing
 
-Tests run automatically in CI via GitHub Actions. See the test harness repo for details.
-
-### Locally with Docker Compose
-
-```bash
-# From the posthog-python/sdk_compliance_adapter directory
-docker-compose up --build --abort-on-container-exit
-```
-
-This will:
-1. Build the Python SDK adapter
-2. Pull the test harness image
-3. Run all compliance tests
-4. Show results
-
-### Manually with Docker
-
-```bash
-# Create network
-docker network create test-network
-
-# Build and run adapter
-docker build -f sdk_compliance_adapter/Dockerfile -t posthog-python-adapter .
-docker run -d --name sdk-adapter --network test-network -p 8080:8080 posthog-python-adapter
-
-# Run test harness
-docker run --rm \
-  --name test-harness \
-  --network test-network \
-  ghcr.io/posthog/sdk-test-harness:latest \
-  run --adapter-url http://sdk-adapter:8080 --mock-url http://test-harness:8081
-
-# Cleanup
-docker stop sdk-adapter && docker rm sdk-adapter
-docker network rm test-network
-```
+See [CONTRIBUTING.md](CONTRIBUTING.md) for local build and compliance test instructions.
 
 ## Adapter Implementation