diff --git a/README.md b/README.md
index d38d75e..7f84be0 100644
--- a/README.md
+++ b/README.md
@@ -45,12 +45,23 @@ races!
 
 ## Example
 
-Here's a small service.
+For this example, in addition to tarpc, also add two other dependencies to
+your `Cargo.toml`:
+
+```toml
+futures-preview = { version = "0.3.0-alpha.16", features = ["compat"] }
+tokio = "0.1"
+```
+
+In the following example, we use an in-process channel for communication between
+client and server. In real code, you will likely communicate over the network.
+For a more real-world example, see [example-service](example-service).
+
+First, let's set up the dependencies and service definition.
 
 ```rust
 #![feature(arbitrary_self_types, async_await, proc_macro_hygiene)]
 
-
 use futures::{
     compat::Executor01CompatExt,
     future::{self, Ready},
@@ -68,7 +79,12 @@ tarpc::service! {
     /// Returns a greeting for name.
     rpc hello(name: String) -> String;
 }
+```
 
+This service definition generates a trait called `Service`. Next we need to
+implement it for our Server struct.
+
+```rust
 // This is the type that implements the generated Service trait. It is the business logic
 // and is used to start the server.
 #[derive(Clone)]
@@ -84,31 +100,33 @@ impl Service for HelloServer {
         future::ready(format!("Hello, {}!", name))
     }
 }
+```
 
+Next let's write a function to start our server. While this example uses an
+[in-process
+channel](https://docs.rs/tarpc/0.18.0/tarpc/transport/channel/struct.UnboundedChannel.html),
+tarpc also ships a
+[transport](https://docs.rs/tarpc-bincode-transport/0.7.0/tarpc_bincode_transport/)
+that uses bincode over TCP.
+
+```rust
 async fn run() -> io::Result<()> {
-    // bincode_transport is provided by the associated crate bincode-transport. It makes it easy
-    // to start up a serde-powered bincode serialization strategy over TCP.
-    let transport = bincode_transport::listen(&"0.0.0.0:0".parse().unwrap())?;
-    let addr = transport.local_addr();
+    let (client_transport, server_transport) = tarpc::transport::channel::unbounded();
 
-    // The server is configured with the defaults.
     let server = server::new(server::Config::default())
-        // Server can listen on any type that implements the Transport trait.
-        .incoming(transport)
-        // Close the stream after the client connects
-        .take(1)
+        // incoming() takes a stream of transports such as would be returned by
+        // TcpListener::incoming (but a stream instead of an iterator).
+        .incoming(stream::once(future::ready(Ok(server_transport))))
         // serve is generated by the service! macro. It takes as input any type implementing
         // the generated Service trait.
         .respond_with(serve(HelloServer));
 
-    tokio_executor::spawn(server.unit_error().boxed().compat());
-
-    let transport = bincode_transport::connect(&addr).await?;
+    tokio::spawn(server.unit_error().boxed().compat());
 
     // new_stub is generated by the service! macro. Like Server, it takes a config and any
     // Transport as input, and returns a Client, also generated by the macro.
     // by the service mcro.
-    let mut client = new_stub(client::Config::default(), transport).await?;
+    let mut client = new_stub(client::Config::default(), client_transport).await?;
 
     // The client has an RPC method for each RPC defined in service!. It takes the same args
     // as defined, with the addition of a Context, which is always the first arg. The Context
@@ -119,7 +137,13 @@ async fn run() -> io::Result<()> {
 
     Ok(())
 }
+```
 
+Lastly, we'll call `run()` from `main`. Before running a tarpc server or client,
+call `tarpc::init()` to initialize the executor tarpc uses internally to run
+background tasks for the client and server.
+
+```rust
 fn main() {
     tarpc::init(tokio::executor::DefaultExecutor::current().compat());
     tokio::run(run()
@@ -128,6 +152,7 @@ fn main() {
             .compat(),
     );
 }
+
 ```
 
 ## Service Documentation
diff --git a/example-service/Cargo.toml b/example-service/Cargo.toml
index fff599a..f25cd89 100644
--- a/example-service/Cargo.toml
+++ b/example-service/Cargo.toml
@@ -19,7 +19,6 @@ futures-preview = { version = "0.3.0-alpha.16", features = ["compat"] }
 serde = { version = "1.0" }
 tarpc = { version = "0.18", path = "../tarpc", features = ["serde1"] }
 tokio = "0.1"
-tokio-executor = "0.1"
 
 [lib]
 name = "service"