diff --git a/README.md b/README.md
index 8d02fa9..9ca64be 100644
--- a/README.md
+++ b/README.md
@@ -68,14 +68,25 @@ The following are properties on that configuration object.
 
 Defaults to `StencilConfig#{rootDir}/web-types.json`.
 
-Since v0.3.0.
+Since [v0.3.0](https://github.com/stencil-community/stencil-web-types/releases/tag/v0.3.0).
 
-Description: A string that represents the directory to place the output file.
-Users may specify either a directory (e.g. '../'), a filename (e.g. 'my-types.json') or both (e.g. '../my-types.json').
-If no filename ending is '.json' is provided, the output target assumes that a filename must be added to the path.
-In such cases, the default 'web-types.json' will be added to the path.
+Description: A string that represents location of the file generated by this output target.
+Users may specify any of the following:
+- A relative directory (e.g. `'../'`)
+- A filename (e.g. `'my-types.json'`)
+- A relative directory ending in a filename (e.g. `'../my-types.json'`).
 
-It is not recommended that users use absolute paths for this setting, as this can cause errors in projects shared by more than one developer.
+It is not recommended to use absolute paths for this setting, as this can cause errors in projects shared by more than one developer/environment.
+An error will be logged to the console if an absolute path is detected.
+
+Any relative file path provided will be relative to the 'root directory' of your Stencil project.
+By default, this is the directory your project's `stencil.config.ts` is in.
+
+If the value provided does not end in `'.json'`, the output target assumes that a filename must be added to the path.
+In such cases, the default name, `'web-types.json'`, will be added to the path:
+- `../` will be transformed to `../web-types.json`
+- `./web-types` will be transformed to `./web-types/web-types.json`
+- `./my-types.json` will not be transformed, as the provided value ends in `'.json'`
 
 ## Using Web Types