diff --git a/README.md b/README.md
index e19da5b..836b8af 100644
--- a/README.md
+++ b/README.md
@@ -28,15 +28,18 @@ A list of vhost definitions (server blocks) for Nginx virtual hosts. If left emp
         error_log: ""
         extra_parameters: |
           location ~ \.php$ {
-            fastcgi_split_path_info ^(.+\.php)(/.+)$;
-            fastcgi_pass unix:/var/run/php5-fpm.sock;
-            fastcgi_index index.php;
-            fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
-            include fastcgi_params;
-          }
+                  fastcgi_split_path_info ^(.+\.php)(/.+)$;
+                  fastcgi_pass unix:/var/run/php5-fpm.sock;
+                  fastcgi_index index.php;
+                  fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
+                  include fastcgi_params;
+              }
 
 An example of a fully-populated nginx_vhosts entry, using a `|` to declare a block of syntax for the `extra_parameters`.
 
+Please take note of the indentation in the above block. The first line should be a normal 2-space indent, with everything else 4-space indented, relative to the first line.
+Following this style will ensure the config file is indented correctly.
+
     nginx_remove_default_vhost: false
 
 Whether to remove the 'default' virtualhost configuration supplied by Nginx. Useful if you want the base `/` URL to be directed at one of your own virtual hosts configured in a separate .conf file.
diff --git a/templates/vhosts.j2 b/templates/vhosts.j2
index 04dbf9e..454ca2b 100644
--- a/templates/vhosts.j2
+++ b/templates/vhosts.j2
@@ -2,32 +2,32 @@
 server {
     listen {{ vhost.listen | default('80 default_server') }};
 
-    {% if vhost.server_name is defined %}
+{% if vhost.server_name is defined %}
     server_name {{ vhost.server_name }};
-    {% endif %}
+{% endif %}
 
-    {% if vhost.root is defined %}
+{% if vhost.root is defined %}
     root {{ vhost.root }};
-    {% endif %}
+{% endif %}
 
     index {{ vhost.index | default('index.html index.htm') }};
 
-    {% if vhost.error_page is defined %}
+{% if vhost.error_page is defined %}
     error_page {{ vhost.error_page }};
-    {% endif %}
-    {% if vhost.access_log is defined %}
+{% endif %}
+{% if vhost.access_log is defined %}
     access_log {{ vhost.access_log }};
-    {% endif %}
-    {% if vhost.error_log is defined %}
+{% endif %}
+{% if vhost.error_log is defined %}
     error_log {{ vhost.error_log }} error;
-    {% endif %}
+{% endif %}
 
-    {% if vhost.return is defined %}
+{% if vhost.return is defined %}
     return {{ vhost.return }};
-    {% endif %}
+{% endif %}
 
-    {% if vhost.extra_parameters is defined %}
+{% if vhost.extra_parameters is defined %}
     {{ vhost.extra_parameters }}
-    {% endif %}
+{% endif %}
 }
 {% endfor %}