diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/output/my_default_python/README.md
index 97d7d7949..10f570bf4 100644
--- a/acceptance/bundle/templates/default-python/output/my_default_python/README.md
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/README.md
@@ -37,10 +37,12 @@ The 'my_default_python' project was generated by using the default-python templa
    ```
    $ databricks bundle run
    ```
-
-6. Optionally, install developer tools such as the Databricks extension for Visual Studio Code from
-   https://docs.databricks.com/dev-tools/vscode-ext.html. Or read the "getting started" documentation for
-   **Databricks Connect** for instructions on running the included Python code from a different IDE.
+6. Optionally, install the Databricks extension for Visual Studio code for local development from
+   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
+   virtual environment and setup Databricks Connect for running unit tests locally.
+   When not using these tools, consult your development environment's documentation
+   and/or the documentation for Databricks Connect for manually setting up your environment
+   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
 
 7. For documentation on the Databricks asset bundles format used
    for this project, and for CI/CD configuration, see
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
index 53847a9c9..b8811fa3e 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
@@ -38,10 +38,16 @@ The '{{.project_name}}' project was generated by using the default-python templa
    $ databricks bundle run
    ```
 
+{{- if (eq .include_python "no") }}
 6. Optionally, install developer tools such as the Databricks extension for Visual Studio Code from
    https://docs.databricks.com/dev-tools/vscode-ext.html.
-{{- if (eq .include_python "yes") }} Or read the "getting started" documentation for
-   **Databricks Connect** for instructions on running the included Python code from a different IDE.
+{{- else }}
+6. Optionally, install the Databricks extension for Visual Studio code for local development from
+   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
+   virtual environment and setup Databricks Connect for running unit tests locally.
+   When not using these tools, consult your development environment's documentation
+   and/or the documentation for Databricks Connect for manually setting up your environment
+   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
 {{- end}}
 
 7. For documentation on the Databricks asset bundles format used