diff --git a/README.md b/README.md
index 6ffc4eb..9ab9f23 100644
--- a/README.md
+++ b/README.md
@@ -21,5 +21,16 @@ ZSH_CONFIG_DIR="path/to/this/repo" # This variable *MUST* be set
 source "${ZSH_CONFIG_DIR}/init.zsh"
 ```
 3. Optionally, set some other variables (before the `source` line):
- * ZSH_BOOKMARK_DIR: Bookmark directory (default: ~/.cache/zsh/bookmarks) 
- * ZSH_BOOKMARK_LS: If true, run `ls` after jumping to a bookmark
+ * ZSH_BOOKMARK_DIR: Bookmark directory (default: ~/.cache/zsh/bookmarks)
+ * ZSH_BOOKMARK_LS: If true, run `ls` after jumping to a bookmark (default:
+   true)
+ * ZSH_USER_DIR: Directory containing configuration files (see below, default:
+   ~/.zsh.d)
+
+###  Configuration
+To configure, create `~/.zsh.d` (or set ZSH_USER_DIR as described above). The
+create either of the option files `init.zsh` and `early-init.zsh`. The former is
+run in the middle of startup, after most plugins have been initialized, but
+before ones related to command history, auto-complete, etc. The latter is run as
+the first thing in the configuration file (after `autoload -U compinit &&
+compinit`).