diff --git a/README.md b/README.md
index 82913ec..3b5d649 100644
--- a/README.md
+++ b/README.md
@@ -12,6 +12,17 @@ First class support for:
 
 `$ pip install cloudbender`
 
+# State management
+## Cloudformation
+All state is handled by AWS Cloudformation.  
+The required account and region are determined by CloudBender automatically from the configuration.
+
+## Pulumi
+The state for all Pulumi resources are stored on S3 in your account and in the same region as the resources being deployed.
+No data is send to nor shared with the official Pulumi provided APIs.
+
+CloudBender configures Pulumi with a local, temporary workspace on the fly. This incl. the injection of various common parameters like the AWS account ID and region etc.  
+
 
 # CLI