diff --git a/docs/Installing/Configuration.md b/docs/Installing/Configuration.md
index b52ef1d74c..b3f4ecc4aa 100644
--- a/docs/Installing/Configuration.md
+++ b/docs/Installing/Configuration.md
@@ -6,7 +6,9 @@ When it starts up, Actual looks for an optional `config.json` file in the same d
 
 ## `ACTUAL_CONFIG_PATH`
 
-This is the path to the config file. If not specified, the server will look for a `config.json` file in the same directory as the `package.json`. This can only be specified as an environment variable.
+This is the path to the config file. If not specified, the server will look for a `config.json` file either in the `/data` directory if it is present, or in the same directory as the `package.json` if `/data` is not present.
+
+You can’t specify this option in `config.json` since it needs to be used to find the `config.json` in the first place.
 
 ## `https`
 
@@ -61,4 +63,3 @@ If you’re providing a custom frontend, make sure you provide an `index.html` i
             "secretKey": "xxxxx"
         }
     }
-