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diff --git a/playbooks/openstack/README.md b/playbooks/openstack/README.md
index f3d5b5aa8..875004cc9 100644
--- a/playbooks/openstack/README.md
+++ b/playbooks/openstack/README.md
@@ -38,6 +38,19 @@ Optional:
* External Neutron network with a floating IP address pool
+## DNS Requirements
+
+OpenShift requires DNS to operate properly. OpenStack supports DNS-as-a-service
+in the form of the Designate project, but the playbooks here don't support it
+yet. Until we do, you will need to provide a DNS solution yourself (or in case
+you are not running Designate when we do).
+
+If your server supports nsupdate, we will use it to add the necessary records.
+
+TODO(shadower): describe how to build a sample DNS server and how to configure
+our playbooks for nsupdate.
+
+
## Installation
There are four main parts to the installation:
@@ -143,6 +156,8 @@ $ vi inventory/group_vars/all.yml
4. Set the `openstack_default_flavor` to the flavor you want your
OpenShift VMs to use.
- See `openstack flavor list` for the list of available flavors.
+5. Set the `public_dns_nameservers` to the list of the IP addresses
+ of the DNS servers used for the **private** address resolution[1].
**NOTE**: In most OpenStack environments, you will also need to
configure the forwarders for the DNS server we create. This depends on
@@ -153,6 +168,9 @@ put the IP addresses into `public_dns_nameservers` in
`inventory/group_vars/all.yml`.
+[1]: Yes, the name is bad. We will fix it.
+
+
#### OpenShift configuration
The OpenShift configuration is in `inventory/group_vars/OSEv3.yml`.