diff --git a/README.md b/README.md
index 87eb8f5..39e48f5 100644
--- a/README.md
+++ b/README.md
@@ -154,7 +154,7 @@ OpenSpec integration conventions, auto-applied when working with spec.md files:
 
 ## MCP server
 
-The [reqstool MCP server](https://github.com/reqstool/reqstool-client) (reqstool ≥ 0.9.0) exposes structured tools for AI agents: `get_status`, `list_requirements`, `get_requirement_status`, and more.
+The [reqstool MCP server](https://github.com/reqstool/reqstool-client) (reqstool ≥ 0.10.0) exposes structured tools for AI agents: `get_status`, `list_requirements`, `get_requirement_status`, and more.
 
 The `/reqstool:init` command can configure it automatically. To set it up manually, add to `.mcp.json` in your project root (project-scoped) or `~/.config/claude/mcp.json` (global):
 
@@ -163,12 +163,14 @@ The `/reqstool:init` command can configure it automatically. To set it up manual
   "mcpServers": {
     "reqstool": {
       "command": "reqstool",
-      "args": ["mcp", "local", "-p", "<your-system-path>"]
+      "args": ["mcp"]
     }
   }
 }
 ```
 
+With no arguments, `reqstool mcp` walks up from cwd to find `.reqstool-ai.yaml` and serves the dataset at `system.path` from it — so the same `.mcp.json` works for every contributor regardless of where the repo is cloned. For older reqstool versions (or when no `.reqstool-ai.yaml` is present), pass an explicit path: `["mcp", "local", "-p", "<your-system-path>"]`.
+
 When configured, skills like `/reqstool:status` use MCP for structured data. If the server is not available they fall back to `reqstool status local` automatically, notifying you when they do.
 
 ## Prerequisites
diff --git a/plugins/reqstool/skills/reqstool/init/SKILL.md b/plugins/reqstool/skills/reqstool/init/SKILL.md
index 17858a3..0da1a2d 100644
--- a/plugins/reqstool/skills/reqstool/init/SKILL.md
+++ b/plugins/reqstool/skills/reqstool/init/SKILL.md
@@ -80,7 +80,7 @@ Create or update `.reqstool-ai.yaml` configuration for this project.
 
 5. **Configure MCP server (optional)**
 
-   Offer to configure the reqstool MCP server (requires reqstool ≥ 0.9.0):
+   Offer to configure the reqstool MCP server (requires reqstool ≥ 0.10.0):
 
    > The reqstool MCP server gives AI tools structured access to your requirements.
    > Would you like me to add the MCP server configuration?
@@ -96,12 +96,16 @@ Create or update `.reqstool-ai.yaml` configuration for this project.
      "mcpServers": {
        "reqstool": {
          "command": "reqstool",
-         "args": ["mcp", "local", "-p", "<system.path>"]
+         "args": ["mcp"]
        }
      }
    }
    ```
 
+   `reqstool mcp` (no arguments) auto-detects the dataset by walking up from
+   the server's working directory to find `.reqstool-ai.yaml` and using its
+   `system.path` — so this same config is portable across contributors.
+
    If the chosen file already has a `reqstool` entry, show it and ask before overwriting.
 
    If `reqstool` is not yet installed, skip this step and tell the user: