diff --git a/.env.sample b/.env.sample
deleted file mode 100644
index f997341d1..000000000
--- a/.env.sample
+++ /dev/null
@@ -1,3 +0,0 @@
-NODE_ENV=development
-PROXY_HOST=http://localhost
-PROXY_PORT=8080
diff --git a/README.md b/README.md
index aef6d4798..1097eaf40 100644
--- a/README.md
+++ b/README.md
@@ -18,6 +18,16 @@ npm start
 
 Once running, open `http://localhost:8333` in your browser. If you wish to have the server reload automatically, you can install either [nodemon](https://github.com/remy/nodemon) or [forever](https://github.com/foreverjs/forever).
 
+#### Configuration
+
+`npm start` and `npm run watch` can be configured with the following environment variables
+
+| Variable      | Default                           | Description                                    |
+| ------------- | --------------------------------- | ---------------------------------------------- |
+| `NODE_ENV`    | `null`                            | If not `production`, app acts like development |
+| `PORT`        | `8333`                            | Port for devserver (http://localhost:XXXX)     |
+| `PROXY_HOST`  | `https://staging.scratch.mit.edu` | Pass-through location for scratchr2            |
+
 ### To Test
 ```bash
 npm test
diff --git a/server/index.js b/server/index.js
index c313ce1f4..b4bc9c7e1 100644
--- a/server/index.js
+++ b/server/index.js
@@ -27,8 +27,7 @@ for (var routeId in routes) {
 if ( process.env.NODE_ENV != 'production' ) {
     var proxies = require('./proxies.json');
     var url = require('url');
-    var proxyHost = process.env.PROXY_HOST || 'http://localhost';
-    proxyHost += ':' + (process.env.PROXY_PORT || 8080);
+    var proxyHost = process.env.PROXY_HOST || 'https://staging.scratch.mit.edu';
     for (var proxyId in proxies) {
         var proxyRoute = proxies[proxyId];
         app.use(proxyRoute.root, proxy(proxyRoute.proxy || proxyHost, {