diff --git a/README.md b/README.md
index 0dae1da..92997ea 100644
--- a/README.md
+++ b/README.md
@@ -26,7 +26,8 @@ The following diagram shows the architecture that this sample application builds
 
 ## Prerequisites
 
-- [`localstack` CLI](https://docs.localstack.cloud/getting-started/installation/#localstack-cli) with a [`LOCALSTACK_AUTH_TOKEN`](https://docs.localstack.cloud/getting-started/auth-token/).
+- A valid [LocalStack for AWS license](https://localstack.cloud/pricing). Your license provides a [`LOCALSTACK_AUTH_TOKEN`](https://docs.localstack.cloud/getting-started/auth-token/) to activate LocalStack.
+- [`localstack` CLI](https://docs.localstack.cloud/getting-started/installation/#localstack-cli).
 - [AWS CLI](https://docs.localstack.cloud/user-guide/integrations/aws-cli/) with the [`awslocal` wrapper](https://docs.localstack.cloud/user-guide/integrations/aws-cli/#localstack-aws-cli-awslocal).
 - [CDK](https://docs.localstack.cloud/user-guide/integrations/aws-cdk/) with the [`cdklocal`](https://www.npmjs.com/package/aws-cdk-local) wrapper.
 - [Node.js](https://nodejs.org/en/download/)
@@ -47,6 +48,7 @@ Then, navigate to the project directory:
 ```shell
 cd sample-cdk-rds-database-initialization
 ```
+
 Next, install the project dependencies by running the following command:
 
 ```shell