diff --git a/README.md b/README.md
index d558c57c..ccb33808 100644
--- a/README.md
+++ b/README.md
@@ -143,7 +143,9 @@ Now you need a Django template for your component. Feel free to define more vari
 <div class="calendar-component">Today's date is <span>{{ date }}</span></div>
 ```
 
-Finally, we use django-components to tie this together. We create a Component by inheriting from the Component class and specifying the context method. We also register the global component registry so that we easily can render it anywhere in our templates.
+Finally, we use django-components to tie this together. Start by creating a file called `components.py` in any of your apps. It will be auto-detected and loaded by the app.
+
+Inside this file we create a Component by inheriting from the Component class and specifying the context method. We also register the global component registry so that we easily can render it anywhere in our templates.
 
 ```python
 from django_components import component
@@ -255,6 +257,20 @@ NOTE: `{% csrf_token %}` tags need access to the top-level context, and they wil
 
 Components can also access the outer context in their context methods by accessing the property `outer_context`.
 
+# Configuring the library location
+
+If you want to, you can configure the location where components are loaded. To do this, add a COMPONENTS variable to you settings.py with a list of libraries to look for. This allows you to build a structure of components that are independent from your apps.
+
+```python
+COMPONENTS = {
+    "libraries": [
+        "mysite.components.forms",
+        "mysite.components.buttons",
+        "mysite.components.cards",
+    ]
+}
+```
+
 # Running the tests
 
 To quickly run the tests install the local dependencies by running