diff --git a/README.md b/README.md
index b137ef0..4226f10 100644
--- a/README.md
+++ b/README.md
@@ -35,7 +35,7 @@ adjust as necessary. A good approach is to
 - Replace `hello_cmd` with the name of the new command in
   `datalad_helloworld/tests/test_register.py` to automatically test whether the
   new extension installs correctly.
-- Adjust the documentation in `docs/source/index.rst`.
+- Adjust the documentation in `docs/source/index.rst`. Refer to [`docs/README.md`](docs/README.md) for more information on documentation building, testing and publishing.
 - Replace this README.
 - Update `setup.cfg` with appropriate metadata on the new extension.
 
diff --git a/docs/README.md b/docs/README.md
new file mode 100644
index 0000000..d9d5ac4
--- /dev/null
+++ b/docs/README.md
@@ -0,0 +1,35 @@
+## Editing, building, and publishing extension documentation
+
+
+The `datalad-extension-template` uses [Sphinx](https://www.sphinx-doc.org/en/master/index.html#) for document generation
+and suggests using [Read the Docs](https://docs.readthedocs.io/en/stable/) for automatic documentation building, versioning, and hosting.
+
+Once you are ready to document your extension software, take note of the following:
+
+### Document editing
+
+Edit your `docs/source/index.rst` file using [reStructuredText](https://www.sphinx-doc.org/en/master/usage/restructuredtext/basics.html),
+which is the default plaintext markup language used by Sphinx. Add further documentation as needed.
+
+### Local testing
+
+For testing locally whether your documentation builds and renders correctly, first install the developer requirements from the repository's root directory:
+```
+pip install -r requirements-devel.txt
+```
+
+Then build the documentation locally:
+```
+make -C docs html
+```
+
+Navigate to `docs/build/` and open `index.html` in your browser to view your documentation.
+
+### Remote building and testing
+
+The GitHub Action workflow located at `.github/workflows/docbuild.yml` will run on a push or pull request to your GitHub repository's master/main branch. This builds the documentation remotely and serves as an automated documentation test.
+
+### Publishing your documentation
+
+- If you maintain your extension yourself *outside of the scope of the DataLad GitHub organization*, you can follow [these instructions](https://docs.readthedocs.io/en/stable/integrations.html) for integrating your version control system (such as GitHub) with Read the Docs.
+- If your extension is *maintained by the DataLad developer team*, please create an issue asking for help with the setup.