diff --git a/.gitignore b/.gitignore
index 22e79503..e65a6237 100644
--- a/.gitignore
+++ b/.gitignore
@@ -5,6 +5,8 @@ __pycache__/
 projects/
 */bayesflow.egg-info
 docsrc/_build/
+docsrc/_build_polyversion
+docsrc/.bf_doc_gen_venv
 docsrc/source/api
 docsrc/source/_examples
 docsrc/source/contributing.md
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 3fd6060b..254ed6ff 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -138,24 +138,27 @@ z = keras.ops.convert_to_numpy(x)
 
 The documentation uses [sphinx](https://www.sphinx-doc.org/) and relies on [numpy style docstrings](https://numpydoc.readthedocs.io/en/latest/format.html) in classes and functions.
 
-You need to install the following python packages for setting up documentation generation:
+Run the following command to install all necessary packages for setting up documentation generation:
 
 ```
-pip install sphinx numpydoc myst-nb sphinx_design sphinx-book-theme sphinxcontrib-bibtex
+pip install .[docs]
 ```
 
-The overall *structure* of the documentation is manually designed. This also applies to the API documentation. This has two implications for you:
+The overall *structure* of the documentation is manually designed, but the API documentation is auto-generated.
 
-1. If you add to existing submodules, the documentation will update automatically (given that you use proper numpy docstrings).
-2. If you add a new submodule or subpackage, you need to add a reference to the new module to the appropriate section
-   of `docsrc/source/api/bayesflow.rst`.
+You can re-build the current documentation with
 
-You can re-build the documentation with
+```bash
+cd docsrc
+make clean && make dev
+# in case of issues, try `make clean-all`
+```
+
+We also provide a multi-version documentation. To generate it, run
 
 ```bash
 cd docsrc
 make clean && make github
-# in case of issues, try `make clean-all`
 ```
 
 The entry point of the rendered documentation will be at `docs/index.html`.
diff --git a/docsrc/Makefile b/docsrc/Makefile
index 9844c674..3612ca64 100644
--- a/docsrc/Makefile
+++ b/docsrc/Makefile
@@ -25,7 +25,13 @@ dev:
 	@cp .nojekyll ../docs/.nojekyll
 
 github:
-	@BF_DOCS_SYNCHRONOUS_BUILDS=1 sphinx-polyversion -vv poly.py
+	@BF_DOCS_SEQUENTIAL_BUILDS=1 sphinx-polyversion poly.py
+	@echo 'Copying docs to ../docs'
+	@cp -a _build_polyversion/. ../docs
+	@cp .nojekyll ../docs/.nojekyll
+
+parallel:
+	@BF_DOCS_SEQUENTIAL_BUILDS=0 sphinx-polyversion poly.py
 	@echo 'Copying docs to ../docs'
 	@cp -a _build_polyversion/. ../docs
 	@cp .nojekyll ../docs/.nojekyll
@@ -38,6 +44,10 @@ clean:
 	@rm -f source/installation.rst
 	@rm -f source/contributing.md
 
+clean-all:
+	@make clean
+	@rm -rf docsrc/.bf_doc_gen_venv
+
 .PHONY: help Makefile
 
 # Catch-all target: route all unknown targets to Sphinx using the new
diff --git a/docsrc/README.md b/docsrc/README.md
new file mode 100644
index 00000000..e29e5afa
--- /dev/null
+++ b/docsrc/README.md
@@ -0,0 +1,98 @@
+# Documentation
+
+## Overview
+
+To install the necessary dependencies, please run `pip install -e .[docs]`.
+You can then do the following:
+
+1. `make dev`: Generate the docs for the current version
+2. `make github`: Build the docs for tagged versions, `master` and `dev` in a sequential fashion
+3. `make parallel`: As `make github`, but builds occur in parallel (see below for details)
+
+The docs will be copied to `../docs`.
+
+## Build process
+
+In this section, the goals and constraints for the build process are described.
+
+Goals:
+
+- (semi-)automated documentation generation
+- multi-version documentation
+- runnable as a GitHub action
+
+Constraints:
+
+- GitHub actions have limited disk space (14GB)
+
+### Considerations
+
+For building the documentation, we need to install a given BayesFlow
+version/branch, its dependencies and the documentation dependencies into
+a virtual environment. As the dependencies differ, we cannot share the
+environments between versions.
+
+[sphinx-polyversion](https://github.com/real-yfprojects/sphinx-polyversion/) is a compact standalone tool that handles this case in a customizable manner.
+
+### Setup
+
+Please refer to the [sphinx-polyversion documentation](https://real-yfprojects.github.io/sphinx-polyversion/1.0.0/index.html)
+for a getting started tutorial and general documentation.
+Important locations are the following:
+
+- `poly.py`: Contains the polyversion-specific configuration.
+- `pre-build.py`: Build script to move files from other locations to `source`.
+    Shared between all versions.
+- `source/conf.py`: Contains the sphinx-specific configuration. Will be copied
+    from the currently checked-out branch, and shared between all versions.
+    This enables a unified look and avoids having to add commits to old versions.
+- `polyversion/`: Polyversion-specific files, currently only redirect template.
+- `Makefile`/`make.bat`: Define commands to build different configurations.
+
+### Building
+
+For the multi-version docs, there are two ways to build them, which can be
+configured by setting the `BF_DOCS_SEQUENTIAL_BUILDS` environment variable.
+
+#### Parallel Builds (Default)
+
+This is the faster, but more resource intensive way. All builds run in parallel,
+in different virtual environments which are cached between runs.
+Therefore it needs a lot of space (around 20GB), some memory, and the runtime
+is determined by the slowest build.
+
+#### Sequential Builds
+
+By setting the environment variable `BF_DOCS_SEQUENTIAL_BUILDS=1`, a
+resource-constrained approach is chosen. Builds are sequential, and the
+virtual environment is deleted after the build. This overcomes the disk space
+limitations in the GitHub actions, at the cost of slightly higher built times
+(currently about 30 minutes). The variable can be set in the following way,
+which is used in `make github`:
+
+```bash
+BF_DOCS_SEQUENTIAL_BUILDS=1 sphinx-polyversion -vv poly.py
+```
+
+### Internals
+
+We customize the creation and loading of the virtual environment to have
+one environment per revision (`DynamicPip`). We also create a variant that
+removes the environment after leaving it (`DestructingDynamicPip`). This
+enables freeing disk space in sequential builds.
+
+As only the contents of a revision, but not the `.git` folder is copied
+for the build, we have to supply `SETUPTOOLS_SCM_PRETEND_VERSION_FOR_BAYESFLOW`
+with a version, otherwise `setuptools-scm` will fail when running
+`pip install -e .`. To enable this, we accept and set environment variables
+in `DynamicPip`.
+
+The environments are created in `VENV_DIR_NAME`, and only removed if they are
+in this directory.
+
+For sequential builds, define the `SynchronousDriver` class, which builds the
+revisions sequentially.
+
+For all other details, please refer to `poly.py` and the code of `sphinx-polyversion`.
+
+This text was written by @vpratz, if you have any questions feel free to reach out.
diff --git a/docsrc/poly.py b/docsrc/poly.py
index 06e7056f..a2898d47 100644
--- a/docsrc/poly.py
+++ b/docsrc/poly.py
@@ -25,7 +25,7 @@
 logger = getLogger(__name__)
 
 #: Whether to build the docs in parallel
-PARALLEL_BUILDS = os.environ.get("BF_DOCS_SYNCHRONOUS_BUILDS", "0") != "1"
+PARALLEL_BUILDS = os.environ.get("BF_DOCS_SEQUENTIAL_BUILDS", "0") != "1"
 print(PARALLEL_BUILDS, "parallel")
 
 #: Determine repository root directory