Most users who realize that INSTALL files still exist should simply
follow the directions at
https://www.torproject.org/docs/tor-doc-unix

If you got the source from git, run "./autogen.sh", which will
run the various auto* programs. Then you can run ./configure, and
refer to the above instructions.

If it doesn't build for you:

  If you have problems finding libraries, try
    CPPFLAGS="-I/usr/local/include" LDFLAGS="-L/usr/local/lib" \
    ./configure
  or
    ./configure --with-libevent-dir=/usr/local
  rather than simply ./configure.