diff --git a/environment.yml b/environment.yml
new file mode 100644
index 0000000..411e5fc
--- /dev/null
+++ b/environment.yml
@@ -0,0 +1,23 @@
+name: nlu
+channels:
+  - conda-forge
+  - defaults
+dependencies:
+  - python>=3.9
+  - numpy>=1.20.0
+  - scipy>=1.7.0
+  - matplotlib>=3.7.0
+  - scikit-learn>=1.0.2
+  - nltk>=3.7
+  - pytest>=7.1
+  - jupyter>=1.0.0
+  - pandas>=1.5
+  - pytorch==2.1.2
+  - transformers==4.37.1
+  - datasets==2.14.6
+  - spacy==3.7.2
+  - pip:
+    - dspy-ai
+    - openai
+    - python-dotenv
+    - wget
diff --git a/setup.ipynb b/setup.ipynb
index 8dcb324..dff5859 100644
--- a/setup.ipynb
+++ b/setup.ipynb
@@ -49,13 +49,10 @@
     "\n",
     "One you have Anaconda installed, create a virtual environment for the course. In a terminal, run\n",
     "\n",
-    "```conda create -n nlu python=3.9 anaconda```\n",
+    "```conda create env --file=environment.yml```\n",
     "\n",
     "to create an environment called `nlu`.\n",
     "\n",
-    "> NOTE: Run the above command without `anaconda` if you see this error message `PackagesNotFoundError: The following packages are not available from current channels: - anaconda`\n",
-    "\n",
-    "\n",
     "Then, to enter the environment, run\n",
     "\n",
     "```conda activate nlu```\n",