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diff --git a/docs/users_guide_src/output.tex b/docs/users_guide_src/output.tex
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+++ b/docs/users_guide_src/output.tex
@@ -15,6 +15,13 @@ representation of its value. These string representations are identical to
those returned by Python's str() function, with the exception of \code{None}.
\code{None} is replaced with an empty string, or in other words nothing.
+Cheetah finds the values for Placeholders in several places. First, the
+placeholder name can be one of Python's builtins, like \code{\$range} or
+\code{\$len}. Second, the name can refer to a variable in Cheetah's
+\code{``searchList''}. Third, the name can refer to a local variable, such as
+\code{\$i} in a for loop, or an imported module name, such as \code{\#import
+math \ldots \$math.sin(0.5)}.
+
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\subsection{Output From Complex Expressions: \#echo}
\label{TDL.echo}