diff --git a/tools/fs/README.md b/tools/fs/README.md
new file mode 100644
index 0000000000..552e43a46d
--- /dev/null
+++ b/tools/fs/README.md
@@ -0,0 +1,41 @@
+This folder contains modules that help communicating with the file-system.
+
+## `files` vs `fs` and `files.path*` vs `path`
+
+Since the Meteor tool was originally written to work on Mac OS X and Linux but
+now is also required to work on Windows, there has been a decision to abstract
+the file-system calls to `fs` and `path` modules and make them go through the
+`files.js` lib.
+
+All path and files manipulations in the `tools` code assumes it is running in a
+unixy environment, where the path separator is `/` and the default line-break
+symbol is `\n`; calls like `rename` and `unlink` are atomic and the file-system 
+always works as you expect.
+
+The `files.js` file tries its best to simulate this behavior on Windows,
+converting slashes, file contents and running FS operations in a
+"try/sleep/repeat" loop when an `EBUSY` error is returned. Operations on Windows
+happen to be slower, especially moving folders and symlinking (which is done by
+copying the directory instead).
+
+It is advised to use `files.readFile` and others instead of
+`fs.readFileSync`. The methods are Fiberized and are converted on Windows.
+
+Also `files.pathJoin` instead of `path.join` and others to properly preserve the
+unixy feel of paths: `/C/Users/IEUser/AppData/Local` instead of
+`C:\Users\IEUser\AppData\Local`.
+
+## File watching
+
+Since node.js doesn't ship a stable library to watch a folder on all
+file-systems, a wrapper is used. The wrapper checks if the native functionality
+works, if not (while on Windows, or a virtualized shared file-system like in
+VirtualBox), a 5s long-polling is used.
+
+The polling and its numbers are tweakable with the environment variables
+`METEOR_WATCH_POLLING_INTERVAL_MS` and `METEOR_WATCH_FORCE_POLLING`.
+
+## Watchset
+
+A specific data-structure that is a set of files and directories paths observed
+by the file-watcher.