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diff --git a/README b/README
index 0414c56..8f4cfed 100644
--- a/README
+++ b/README
@@ -27,6 +27,16 @@ In production
 You may want to copy the file ``chishop/production_example.py`` and modify
 for use as your production settings.
 
+Channels
+========
+
+Channels permit package authors to post development, stage testing, stable and
+other types of packages and tag them with a channel. A package consumer can then
+set easy_install to use the channel URL to find links to packages.
+
+Channels are designed to allow packages to continue to be developed while a
+known-stable set of packages are deployed (ex: development vs. production).
+
 Using Setuptools
 ================