diff --git a/docsite/latest/rst/patterns.rst b/docsite/latest/rst/patterns.rst
index 3c3df34355..0223cb21a8 100644
--- a/docsite/latest/rst/patterns.rst
+++ b/docsite/latest/rst/patterns.rst
@@ -226,6 +226,10 @@ the 'raleigh' group might look like::
 
 It is ok if these files do not exist, this is an optional feature.
 
+Tip: In Ansible 1.2 or later the group_vars/ and host_vars/ directories can exist in either 
+the playbook directory OR the inventory directory. If both paths exist, variables in the playbook
+directory will be loaded second.
+
 Tip: Keeping your inventory file and variables in a git repo (or other version control)
 is an excellent way to track changes to your inventory and host variables.