diff --git a/LABS.md b/LABS.md
new file mode 100644
index 00000000..b0b96a9a
--- /dev/null
+++ b/LABS.md
@@ -0,0 +1,82 @@
+## LoopBack 4 Labs
+
+We created `loopback-labs` monorepo to facilitate development of experimental
+features without interfering with `loopback-next`.
+
+`loopback-labs` is a logical `fork` of `loopback-next` (github does not allow us
+to folk `loopback-next` into the same organization (`strongloop`)).
+
+We divide responsibilities as follows:
+
+- `loopback-next`: the repository to develop and release production-ready
+  features.
+
+- `loopback-labs`: the repository to develop and release experimental features.
+
+Two-way interactions can happen between `loopback-labs` and `loopback-next`.
+
+1. Keep `loopback-labs` in sync with `loopback-next` for production-ready
+   features by rebasing against `loopback-next@master`.
+
+2. Graduate experimental features from `loopback-labs` into `loopback-next`.
+
+## Set up local git repository for `loopback-labs`
+
+```sh
+git clone git@github.com:strongloop/loopback-labs.git
+cd loopback-labs
+git remote add next git@github.com:strongloop/loopback-next.git
+```
+
+## Work on an experimental feature
+
+It follows the same process and flow as `loopback-next`:
+
+1. Create a feature branch
+2. Make changes in the feature branch
+3. Submit a PR against `loopback-labs@master`
+
+Please make sure changes to production packages
+
+## Pull in changes from `loopback-next@master`
+
+```sh
+cd loopback-labs
+git checkout master
+git fetch --all
+git rebase next/master
+git push --force-with-lease
+```
+
+## Rebase the experimental feature branch against master
+
+```
+cd loopback-labs
+git checkout experimental/feature-1
+git fetch --all
+git rebase origin/master
+git push --force-with-lease
+```
+
+## Graduate an experimental feature
+
+### Set up local git repository for `loopback-next`
+
+```sh
+cd loopback-next
+git remote add labs git@github.com:strongloop/loopback-labs.git
+```
+
+### Pull in the experimental feature from `loopback-labs` into `loopback-next`
+
+```sh
+cd loopback-next
+git checkout -b experimental/feature-1
+git fetch --all
+
+// check-pick commits from `labs` into `experimental/feature-1` branch
+
+// Move experimental modules from `experimental` to `packages`
+
+// Create a PR
+```
diff --git a/experimental/README.md b/experimental/README.md
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@@ -0,0 +1,7 @@
+# experimental
+
+This directory contains experimental packages for LoopBack 4. It serves as the
+incubation lab to build features that are not production ready but we would like
+to publish to npm as alpha quality releases (using `0.x.y` versioning scheme).
+See [LABS.md](../LABS.md) to understand how experimental features are developed,
+released, and graduated.
diff --git a/lerna.json b/lerna.json
index 8c8b9ef7..3aa19b09 100644
--- a/lerna.json
+++ b/lerna.json
@@ -5,6 +5,7 @@
     "docs",
     "examples/*",
     "packages/*",
+    "experimental/*",
     "sandbox/*"
   ],
   "command": {