diff --git a/.clangd b/.clangd
new file mode 100644
index 0000000..2e24d4a
--- /dev/null
+++ b/.clangd
@@ -0,0 +1,7 @@
+# https://clangd.llvm.org/config
+CompileFlags:
+  # Our toolchain wraps clang in a script, and clangd's system include extractor treats
+  # the output of that script differently just based on the file name. We
+  # replace the path to the script with the path to the actual clang binary so that
+  # clangd parses the output correctly.
+  Compiler: external/llvm_toolchain_files/bin/clang
diff --git a/.vscode/settings.json b/.vscode/settings.json
index ffddb98..902ad27 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -1,12 +1,14 @@
 {
     "files.watcherExclude": {
+        ".cache/**": true,
         "bazel-*/**": true,
         "external/**": true
     },
     "clangd.arguments": [
         "--header-insertion=never",
         "--compile-commands-dir=${workspaceFolder}/",
-        "--query-driver=**"
+        "--query-driver=**",
+        "--enable-config"
     ],
     "clangd.path": "${workspaceFolder}/external/llvm_toolchain_files/bin/clangd"
 }
diff --git a/README.md b/README.md
index a076cb8..ddb7f10 100644
--- a/README.md
+++ b/README.md
@@ -9,7 +9,7 @@ Should work on Linux and MacOS.
 * Install `bazel` or `bazelisk`
 
 * Verify that you can build and test:
-```
+```sh
 bazel test //...
 ```
 
@@ -22,22 +22,14 @@ Install the recommended extensions. See .vscode/extensions.json.
 Create a compilation database:
 
 ```sh
-bazel build //...
-bazel run @hedron_compile_commands//:refresh_all
+bazel build //... && bazel run @hedron_compile_commands//:refresh_all
 ```
 
 Then configure [clangd](https://clangd.llvm.org/).
 If you're using VS Code, the .vscode/settings does this for you,
 and .vscode/extensions.json already recommends installing the clangd extension.
 
-Otherwise, set these clangd args:
-
-```
---header-insertion=never
---compile-commands-dir=${workspaceFolder}/
---query-driver=**
-```
-
+Otherwise, copy the clangd args from the [.vscode/settings.json](.vscode/settings.json).
 
 ## Status