diff --git a/install_docker.ps1 b/install_docker.ps1
index 1c708698..e873d928 100644
--- a/install_docker.ps1
+++ b/install_docker.ps1
@@ -315,8 +315,9 @@ function Try-Extract-Config {
 
 function Update-AuthBypassOrPassword {
   Write-Host ""; Write-Info "Setting up authentication for your Morphik deployment:"
-  Write-Info " • For external access, set a LOCAL_URI_PASSWORD."
+  Write-Info " • Set a LOCAL_URI_PASSWORD when you want to protect local connection URI generation."
   Write-Info " • For local-only access, press Enter to enable bypass_auth_mode."
+  Write-Info " • With a LOCAL_URI_PASSWORD set, use POST /local/generate_uri with password_token in the form body to create an authorized local connection URI."
   $password = Read-Host "Enter a secure LOCAL_URI_PASSWORD (or press Enter to skip)"
   if ([string]::IsNullOrWhiteSpace($password)) {
     Write-Info "No password provided - enabling authentication bypass (bypass_auth_mode=true)."
@@ -324,7 +325,9 @@ function Update-AuthBypassOrPassword {
     $content = $content -replace '(?m)^bypass_auth_mode\s*=\s*false', 'bypass_auth_mode = true'
     Set-Content morphik.toml -Value $content
   } else {
-    Write-Ok "LOCAL_URI_PASSWORD set - keeping production mode (bypass_auth_mode=false)."
+    Write-Ok "LOCAL_URI_PASSWORD set - keeping authenticated mode (bypass_auth_mode=false)."
+    Write-Info "Use POST /local/generate_uri with password_token in the form body to create authorized local connection URIs."
+    Write-Info "Treat generated local connection URIs as bearer credentials."
     (Get-Content .env -Raw) -replace 'LOCAL_URI_PASSWORD=', "LOCAL_URI_PASSWORD=$password" |
       Set-Content .env
   }
diff --git a/install_docker.sh b/install_docker.sh
index bdad5ab0..5efa9b3f 100755
--- a/install_docker.sh
+++ b/install_docker.sh
@@ -330,9 +330,9 @@ fi
 # 5.0.5 Now that morphik.toml exists, handle LOCAL_URI_PASSWORD configuration
 echo ""
 print_info "🔐 Setting up authentication for your Morphik deployment:"
-print_info "   • If you plan to access Morphik from outside this server, setting a LOCAL_URI_PASSWORD will secure your deployment"
+print_info "   • Set LOCAL_URI_PASSWORD when you want to protect local connection URI generation"
 print_info "   • For local-only access, you can skip this step (bypass_auth_mode will be enabled)"
-print_info "   • With a LOCAL_URI_PASSWORD set, you'll need to use /generate_local_uri endpoint for authorization tokens"
+print_info "   • With a LOCAL_URI_PASSWORD set, use POST /local/generate_uri with password_token in the form body to create an authorized local connection URI"
 echo ""
 read -p "Please enter a secure LOCAL_URI_PASSWORD (or press Enter to skip for local-only access): " local_uri_password < /dev/tty
 if [[ -z "$local_uri_password" ]]; then
@@ -346,8 +346,9 @@ if [[ -z "$local_uri_password" ]]; then
         print_warning "morphik.toml not found, cannot set bypass_auth_mode"
     fi
 else
-    print_success "LOCAL_URI_PASSWORD set - keeping production mode (bypass_auth_mode=false) with authentication enabled"
-    print_info "Use the /generate_local_uri endpoint with this password to create authorized connection URIs"
+    print_success "LOCAL_URI_PASSWORD set - keeping authenticated mode (bypass_auth_mode=false)"
+    print_info "Use POST /local/generate_uri with password_token in the form body to create authorized local connection URIs"
+    print_info "Treat generated local connection URIs as bearer credentials"
 fi
 
 # Only update .env if a password was provided