--- a/README	Thu Jan 07 02:08:50 2010 +0000
+++ b/README	Thu Jan 07 02:20:16 2010 +0000
@@ -26,6 +26,22 @@
 When no command is specified, clix will print a list of the names
 and descriptions of all built-in commands.
 
+## Configuration
+Clix looks for its config file at $HOME/.clix - it is a simple 'ini'
+format, which looks like this:
+
+	[default]
+	jid=user@example.com
+	password=mypassword
+	
+	[otheraccount]
+	jid=otheruser@example.org
+	password=theirpassword
+
+and so on. You can define as many accounts as you want, if no account
+is called 'default' then the first account is the default. If there is
+no [] header at the start of the file it is assumed to be [default].
+
 ## Building and installing
 Building clix is (by no accident) quite simple. It depends on Verse,
 an XMPP client library for Lua. Verse in turn depends on several