diff --git a/.vscode/README.md b/.vscode/README.md
new file mode 100644
index 0000000..503934d
--- /dev/null
+++ b/.vscode/README.md
@@ -0,0 +1,69 @@
+# VS Code / Positron Configuration
+
+## GitHub Copilot Chat Extension Compatibility
+
+This directory contains VS Code configuration files for the fluvgeo project.
+
+### Important Compatibility Information for Positron (OSS-Code 1.103.0)
+
+**Current Limitation:**
+Positron is based on OSS-Code 1.103.0, which has limited compatibility with GitHub Copilot Chat extensions. There is a fundamental compatibility challenge:
+
+1. **Extension Engine Compatibility**: Older GitHub Copilot Chat extension versions that are compatible with OSS-Code 1.103.0 may not work with the current GitHub Copilot cloud service API
+2. **Service API Compatibility**: Newer GitHub Copilot Chat extension versions that work with the current Copilot service may require newer VS Code engine versions (1.90+) and are not compatible with OSS-Code 1.103.0
+3. **Restricted Environments**: If you're in an environment without VS Code Marketplace access, you must manually install extensions from VSIX files
+
+### Installation Options
+
+#### Option 1: Standard Installation (Requires Marketplace Access)
+
+If you have marketplace access:
+1. Open Positron or VS Code
+2. Go to Extensions (Ctrl+Shift+X or Cmd+Shift+X)
+3. Search for "GitHub Copilot Chat"
+4. The marketplace will automatically offer a compatible version for your engine
+5. Note: The compatible version may not work with current Copilot services
+
+#### Option 2: Manual VSIX Installation (Restricted Environments)
+
+If you're in a restricted environment without marketplace access:
+
+1. **Download a VSIX file** from the VS Code Marketplace gallery
+   - Visit: `https://marketplace.visualstudio.com/items?itemName=GitHub.copilot-chat`
+   - Find a version compatible with your environment
+   - Download the VSIX file
+
+2. **Install manually in Positron**:
+   - Open Positron
+   - Go to Extensions view (Ctrl+Shift+X or Cmd+Shift+X)
+   - Click the "..." menu (top right of Extensions view)
+   - Select "Install from VSIX..."
+   - Browse to and select your downloaded VSIX file
+
+**Known Issue**: Many older VSIX versions may be corrupted or incompatible. Version 0.22.2 is confirmed to fail with "Cannot read the extension" error.
+
+### Recommendation for Positron Users
+
+Given the compatibility challenges with OSS-Code 1.103.0:
+
+1. **If possible, upgrade Positron** to a version based on a newer VS Code engine (1.90+) that supports current Copilot Chat extensions
+2. **Alternative**: Use GitHub Copilot (without Chat) extension (`github.copilot`), which may have better compatibility with older engine versions
+3. **Alternative**: Use GitHub Copilot via CLI or API:
+   - [GitHub Copilot CLI](https://githubnext.com/projects/copilot-cli) - Command-line interface for Copilot
+   - [GitHub Copilot API](https://docs.github.com/en/copilot) - Direct API access for integrations
+   - These tools don't require IDE extensions and work independently
+
+### Why This Is Difficult
+
+GitHub Copilot Chat requires both:
+- Frontend compatibility (extension works with your IDE's engine version)
+- Backend compatibility (extension works with GitHub's current Copilot service API)
+
+Finding a version that satisfies both constraints for OSS-Code 1.103.0 may not be possible, as older extensions compatible with the engine may have been deprecated from the service.
+
+### Technical Details
+
+- OSS-Code Engine: 1.103.0
+- Extension ID: `github.copilot-chat`
+- Marketplace: https://marketplace.visualstudio.com/items?itemName=GitHub.copilot-chat
+- Last Updated: December 2024
diff --git a/.vscode/extensions.json b/.vscode/extensions.json
new file mode 100644
index 0000000..f143c84
--- /dev/null
+++ b/.vscode/extensions.json
@@ -0,0 +1,6 @@
+{
+  "recommendations": [
+    "github.copilot-chat"
+  ],
+  "unwantedRecommendations": []
+}
diff --git a/README.Rmd b/README.Rmd
index 4e8fb32..7da90fd 100644
--- a/README.Rmd
+++ b/README.Rmd
@@ -72,5 +72,15 @@ To install the `fluvgeo` package, install from GitHub using the `remotes` packag
 remotes::install_github(repo = "FluvialGeomorph/fluvgeo@*release")
 ```
 
+## Development Tools
+If you're developing with this package using Positron or VS Code, please 
+note that this repository includes configuration for recommended extensions. 
+
+**Important for Positron Users**: If you're using Positron based on OSS-Code 
+1.103.0, please see [.vscode/README.md](.vscode/README.md) for important 
+information about GitHub Copilot Chat compatibility limitations. Due to 
+compatibility challenges between old engine versions and current Copilot 
+services, you may need to upgrade Positron or use alternative tools.
+
 ## Bug Reports
 If you find any bugs using `fluvgeo`, please open an [issue](https://github.com/FluvialGeomorph/fluvgeo/issues). 
diff --git a/README.md b/README.md
index e1bc3a7..e8b75a8 100644
--- a/README.md
+++ b/README.md
@@ -83,6 +83,19 @@ To install the `fluvgeo` package, install from GitHub using the
 
     remotes::install_github(repo = "FluvialGeomorph/fluvgeo@*release")
 
+## Development Tools
+
+If you're developing with this package using Positron or VS Code,
+please note that this repository includes configuration for recommended
+extensions.
+
+**Important for Positron Users**: If you're using Positron based on
+OSS-Code 1.103.0, please see [.vscode/README.md](.vscode/README.md) for
+important information about GitHub Copilot Chat compatibility
+limitations. Due to compatibility challenges between old engine versions
+and current Copilot services, you may need to upgrade Positron or use
+alternative tools.
+
 ## Bug Reports
 
 If you find any bugs using `fluvgeo`, please open an