diff --git a/docs/installation.md b/docs/installation.md
index 3d40ae9b..affba0ec 100644
--- a/docs/installation.md
+++ b/docs/installation.md
@@ -44,6 +44,15 @@ running the following command in an Administrator Terminal before installing
 Set-ItemProperty 'HKLM:\SYSTEM\CurrentControlSet\Control\FileSystem' -Name 'LongPathsEnabled' -Value 1
 ```
 
+## Local data directory
+
+If you are installing `komorebi` for the first time on a new machine, create a
+dedicated folder for `komorebi` in `$Env:LOCALAPPDATA`.
+
+```powershell
+mkdir "$Env:LOCALAPPDATA\komorebi" -ea 0
+```
+
 ## Scoop
 
 Make sure you have installed [`scoop`](https://scoop.sh) and verified that