diff --git a/template/.toco/README b/template/.toco/README
new file mode 100644
index 0000000..940cf2e
--- /dev/null
+++ b/template/.toco/README
@@ -0,0 +1,8 @@
+Directory Structure for Rules (.md files only):
+
+global: Directory for storing common rules applicable to all agents
+toco: Directory for storing Toco Agent-specific rules, used for overall control of the outer workflow
+modeling: Directory for storing Modeling Agent-specific rules, used during the domain modeling phase
+plan: Directory for storing Plan Agent-specific rules, used during the overall planning phase
+design: Directory for storing Design Agent-specific rules, used for TOCO design element creation
+coding: Directory for storing Coding Agent-specific rules, used during the coding phase
\ No newline at end of file