diff --git a/Makefile b/Makefile
index 18440f9..bc02eaa 100644
--- a/Makefile
+++ b/Makefile
@@ -3,8 +3,9 @@
 IMAGE_NAME := quay.io/app-sre/qontract-server
 IMAGE_TAG := $(shell git rev-parse --short=7 HEAD)
 APP_INTERFACE_PATH ?= $(shell pwd)/../../service/app-interface
-SCHEMAS_DIR := $(APP_INTERFACE_PATH)/schemas
-GRAPHQL_SCHEMA_DIR := $(APP_INTERFACE_PATH)/graphql-schemas
+SCHEMAS_PATH ?= $(shell pwd)/../qontract-schemas
+SCHEMAS_DIR := $(SCHEMAS_PATH)/schemas
+GRAPHQL_SCHEMA_DIR := $(SCHEMAS_PATH)/graphql-schemas
 DATA_DIR := $(APP_INTERFACE_PATH)/data
 RESOURCES_DIR := $(APP_INTERFACE_PATH)/resources
 BUNDLE_DIR := $(shell pwd)/bundle
diff --git a/README.md b/README.md
index f675c08..55cc113 100644
--- a/README.md
+++ b/README.md
@@ -11,6 +11,8 @@ This repository comprises the server component, which is a GraphQL API server im
 
 The [JSON Schema Validation](https://github.com/app-sre/qontract-validator) lives in a [separate repo](https://github.com/app-sre/qontract-validator).
 
+The schemas which are used for validation live in [qontract-schemas](https://github.com/app-sre/qontract-schemas).
+
 The Reconcile loop is implementation specific. Any tool that conforms with the following patterns is considered a qontract reconcile tool:
 
 - Retrieves desired state from the GraphQL API.
@@ -112,8 +114,9 @@ make bundle
 ```
 Note that this requires Docker to be running on the host.
 
-Optionally, if you want to specify the path for the app-interface repo on your local filesystem, you can use the parameter:
+Optionally, if you want to specify the path for the app-interface repo or qontract-schemas repo on your local filesystem, you can use the parameter:
 * `APP_INTERFACE_PATH` - (optional) path to a local app-interface repo (Default: `$PWD/../../service/app-interface`).
+* `SCHEMAS_PATH` - (optional) path to a local qontract-schemas repo (Default: `$PWD/../qontract-schemas`)
 
 Example: To generate the bundle with a specific app-interface path: