diff --git a/.envrc b/.envrc
index 3550a30f2de38..6a0e44f6e1876 100644
--- a/.envrc
+++ b/.envrc
@@ -1 +1,5 @@
-use flake
+source_up_if_exists
+if command -v nix >/dev/null 2>&1; then
+  use flake
+fi
+source_env_if_exists .envrc.local
diff --git a/.gitignore b/.gitignore
index e100fce5601ae..1d2c63ac00fde 100644
--- a/.gitignore
+++ b/.gitignore
@@ -72,6 +72,7 @@ datafusion/core/benches/data/*
 # Generated Nix environment hooks
 
 .direnv/
+.envrc.local
 
 # rat
 filtered_rat.txt
diff --git a/docs/source/contributor-guide/development_environment.md b/docs/source/contributor-guide/development_environment.md
index f54ac75d89d7a..e687b7418bff6 100644
--- a/docs/source/contributor-guide/development_environment.md
+++ b/docs/source/contributor-guide/development_environment.md
@@ -52,6 +52,21 @@ Notes:
 - `protoc` is required to compile DataFusion from source.
 - Some tests and examples rely on git submodule data being present locally.
 
+## Nix and direnv
+
+The repository's `flake.nix` provides a Nix development shell. Enter it directly
+with `nix develop`, or install and configure [direnv](https://direnv.net/) and run
+`direnv allow` from the repository root to load it automatically.
+
+The repository's `.envrc` first loads the nearest ancestor `.envrc`, if one
+exists, and then loads the shared Nix environment when Nix is installed. Put
+project-specific direnv settings in `.envrc.local`. This file is ignored by Git
+and loaded last so that local settings take precedence.
+
+If you previously kept personal settings in the repository's `.envrc`, move
+only those settings to `.envrc.local`. Do not copy the shared `.envrc`, as doing
+so would load the Nix environment twice.
+
 ## Windows Setup
 
 ```shell