diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 2f502f421823d..bea944895ff25 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -117,6 +117,9 @@ gradio app.py
 
 This will start the backend server in reload mode, which will watch for changes in the `gradio` folder and reload the app if changes are made. By default, Gradio will launch on port 7860. You can also just use `python app.py`, but this won't automatically trigger updates. 
 
+Note: if you have `gradio` installed elsewhere in your system, you may need to uninstall it or at least make sure your `PYTHONPATH` includes the directory where the Gradio repository is cloned, e.g.,
+`export PYTHONPATH="./"`
+
 
 If you're making frontend changes, start the frontend server:
 
@@ -348,5 +351,18 @@ Run `scripts/build_frontend.sh` with the environment variable `NODE_OPTIONS=--ma
 
 ---
 
+In the case of:
+- Unexpected exceptions being thrown, or
+- The following warning:
+`IMPORTANT: You are using gradio version <earlier version>, however version <later version> is available, please upgrade.`
+
+ensure your `PYTHONPATH` includes the directory where the Gradio repository is cloned, e.g.:
+
+```export PYTHONPATH="./"```
+
+This ensures that when `gradio` is imported in a python program, it is this current version from this repository.
+
+---
+
 _Could these guidelines be clearer? Feel free to open a PR to help us facilitate open-source contributions!_