diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6fd587e35c..70fb5f5645 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,7 +13,7 @@
   [JP Simard](https://github.com/jpsim)
   [#277](https://github.com/realm/SwiftLint/issues/277)
 
-* Add nested `.swiftlint.yml` configuration support.
+* Add nested `.swiftlint.yml` configuration support.  
   [Scott Hoyt](https://github.com/scottrhoyt)
   [#299](https://github.com/realm/SwiftLint/issues/299)
 
diff --git a/README.md b/README.md
index 392e64cc18..475fafbe85 100644
--- a/README.md
+++ b/README.md
@@ -79,7 +79,7 @@ directory to see the currently implemented rules.
 
 ### Disable a rule in code
 
-Rules can be disabled with a comment inside a source file with the following format: 
+Rules can be disabled with a comment inside a source file with the following format:
 
 `// swiftlint:disable <rule>`
 
@@ -136,6 +136,20 @@ variable_name_min_length:
 reporter: "csv" # reporter type (xcode, json, csv, checkstyle)
 ```
 
+#### Nested Configurations
+
+SwiftLint supports nesting configuration files for more granular control over
+the linting process.
+
+  * Set the `use_nested_configs: true` value in your root `.swiftlint.yml` file 
+  * Include additional `.swiftlint.yml` files where necessary in your directory
+    structure.
+  * Each file will be linted using the configuration file that is in it's
+    directory or at the deepest level of it's parent directories. Otherwise the
+    root configuration will be used.
+  * `excluded`, `included`, and `use_nested_configs` are ignored for nested
+    configurations
+
 ### Auto-correct
 
 SwiftLint can automatically correct certain violations. Files on disk are