diff --git a/README.md b/README.md
index 61e9500..516701e 100644
--- a/README.md
+++ b/README.md
@@ -38,3 +38,63 @@ Demo
 
 With the server running locally, 
 now navigate to: https://martindurant.pyscriptapps.com/empty-tundra/latest/
+
+Installation with Optional Dependencies (fsspec-proxy)
+-----------------------------------------------------
+
+The following steps apply only to the `fsspec-proxy` package. The package has
+several optional dependency groups:
+
+- `s3`: Required for S3 access (needed for the "Conda Stats" example)
+- `anaconda`: Required for Anaconda Cloud access
+- `all`: All optional dependencies
+
+S3 Support
+~~~~~~~~~~
+
+To use S3 functionality (including the "Conda Stats" example):
+
+```bash
+pip install .[s3]
+```
+
+Anaconda Cloud Support
+~~~~~~~~~~~~~~~~~~~~~~
+
+To use Anaconda Cloud functionality, you'll need to install dependencies from
+the Anaconda Cloud index. You can do this in two ways:
+
+1. Configure pip to use the Anaconda Cloud index as an extra source. Create (or
+   edit) the file `~/.config/pip/pip.conf` (on macOS/Linux) or
+   `%APPDATA%\pip\pip.ini` (on Windows) and add:
+
+    [global]
+    extra-index-url = https://pypi.anaconda.org/anaconda-cloud/simple
+
+   Then install:
+
+   ```bash
+   pip install .[anaconda]
+   ```
+
+2. Or install directly using pip's `--extra-index-url` option:
+
+   ```bash
+   pip install .[anaconda] --extra-index-url https://pypi.anaconda.org/anaconda-cloud/simple
+   ```
+
+All Optional Dependencies
+~~~~~~~~~~~~~~~~~~~~~~~~
+
+To install all optional dependencies:
+
+```bash
+# With pip config
+pip install .[all]
+
+# Or directly with extra index
+pip install .[all] --extra-index-url https://pypi.anaconda.org/anaconda-cloud/simple
+```
+
+This will ensure that all required packages for `fsspec-proxy`, including those
+only available on Anaconda Cloud, are installed.
diff --git a/fsspec-proxy/pyproject.toml b/fsspec-proxy/pyproject.toml
index 1cbda7e..23dae2d 100644
--- a/fsspec-proxy/pyproject.toml
+++ b/fsspec-proxy/pyproject.toml
@@ -29,8 +29,17 @@ dependencies = [
 ]
 dynamic = ["version", "urls", "keywords"]
 
-[project.optional-dependencies]
-test = ["anaconda-cloud-storage", "s3fs"]
+[dependency-groups]
+s3 = [
+    "s3fs"
+]
+anaconda = [
+    "anaconda-cloud-storage"
+]
+all = [
+    {include-group = "s3"},
+    {include-group = "anaconda"}
+]
 
 [tool.hatch.build.hooks.version]
 path = "fsspec_proxy/_version.py"