diff --git a/README b/README
index 30561e544138479b7f6d37485fd467c42a5ac473..3d0e96ddabc67e2966cc88952a4e6004aa0c0e23 100644
--- a/README
+++ b/README
@@ -17,8 +17,8 @@ doesn't work for you.
 
 Do you want to run a tor server?
 
-  First, copy torrc.sample to torrc and edit the bottom part. Create the
-  DataDirectory, and make sure it's owned by whoever will be running
+  First, copy torrc.sample to torrc and edit the middle part. Create
+  the DataDirectory, and make sure it's owned by whoever will be running
   tor. Fix your system clock so it's not too far off. Make sure name
   resolution works.
 
@@ -30,6 +30,14 @@ Do you want to run a tor server?
   in this configuration until you've been added to the directory
   and can authenticate to the other nodes.
 
+Do you want to run a hidden service?
+
+  Copy torrc.sample to torrc, and edit the bottom part. Then run Tor. It
+  will create each HiddenServiceDir you have configured, and it will
+  create a 'hostname' file which specifies the url (xyz.onion) for that
+  service. You can tell people the url, and they can connect to it via
+  their Tor proxy.
+
 Configuring tsocks:
 
   If you want to use Tor for protocols that can't use Privoxy, or