diff --git a/README.md b/README.md
index 88969487..b9eb2f5a 100644
--- a/README.md
+++ b/README.md
@@ -4,10 +4,8 @@
 
 * Create a new `*.nix` file in the shells directory that describes the environment (this is the hard part).
 
-* Execute `lorri init` in the base directory of your project. This will create a `.envrc` file and `shell.nix` file.
+* Execute `use_nix > .envrc` to initialize the `.envrc` file.
 
-* Edit the `shell.nix` file so that it contains `import /path/to/this/repo/shells/your-new-file.nix`.
+* Execute `ln -s /path/to/correct/file.nix shell.nix`.
 
-* For shells that have a shellHook that exports environment containing computed directories (e.g. the git root or the current working directory), add `eval "$shellHook"` to your `.envrc`.
-
-* Execute `direnv allow` to load the `.envrc` file which in turn uses `lorri` to load your `shell.nix` file.
+* Execute `direnv allow` to load the `.envrc` file which in turn loads your environment.
diff --git a/configurations/direnv.nix b/configurations/direnv.nix
index 9d2b361b..f91b9688 100644
--- a/configurations/direnv.nix
+++ b/configurations/direnv.nix
@@ -3,19 +3,30 @@
 {
   custom.zfs.homeLinks = [
     { path = ".local/share/direnv"; type = "cache"; }
-    { path = ".cache/lorri"; type = "cache"; }
+    { path = ".cache/direnv"; type = "cache"; }
   ];
 
+  nix.extraOptions = ''
+    keep-outputs = true
+    keep-derivations = true
+  '';
+
   home-manager.users.charlotte = { ... }: {
     programs.direnv = {
       enable = true;
+      enableNixDirenvIntegration = true;
       enableZshIntegration = true;
       config = {
         global = {
           strict_env = true;
         };
       };
+      stdlib = ''
+        : ''${XDG_CACHE_HOME:=$HOME/.cache}
+        hash=$(echo -n $PWD | shasum | cut -d' ' -f 1)
+        direnv_layout_dir=$XDG_CACHE_HOME/direnv/layouts/"''$(echo -n $PWD | sed 's#/#-#g')/$hash"
+        mkdir -p "$direnv_layout_dir"
+      '';
     };
-    services.lorri.enable = true;
   };
 }