diff --git a/README.md b/README.md
index fe928d882..bbc3481f0 100644
--- a/README.md
+++ b/README.md
@@ -175,6 +175,14 @@ class PGProxyRunner {
 See [samples/java/jdbc](samples/java/jdbc) for a small sample application that adds
 PGAdapter as a compile-time dependency and runs it together with the main application.
 
+## Emulator
+See [this document](docs/emulator.md) for more information on how to connect PGAdapter to the Cloud
+Spanner Emulator.
+
+Connecting to the Cloud Spanner Emulator is supported with:
+1. PGAdapter version 0.26.0 and higher.
+2. Cloud Spanner Emulator 1.5.12 and higher.
+
 ### Options
 
 The following list contains the most frequently used startup options for PGAdapter.
diff --git a/docs/emulator.md b/docs/emulator.md
new file mode 100644
index 000000000..65667e7d2
--- /dev/null
+++ b/docs/emulator.md
@@ -0,0 +1,93 @@
+# Google Cloud Spanner PGAdapter - Emulator
+
+## Requirements
+Connecting to the Cloud Spanner Emulator is supported with:
+1. PGAdapter version 0.26.0 and higher.
+2. Cloud Spanner Emulator 1.5.12 and higher.
+
+## Usage
+
+PGAdapter can connect to the Cloud Spanner Emulator. The best way to do this is by following these
+steps:
+1. Start PGAdapter with the additional command line argument `-r autoConfigEmulator=true`. Adding
+   this command line argument will instruct PGAdapter to automatically create the Cloud Spanner
+   instance and database that is specified in any connection request. This means that you do not
+   need to first create the instance and database before connecting to the emulator. It will also
+   instruct PGAdapter to connect to the default emulator host `localhost:9010`. You can override
+   this by starting PGAdapter with the `-e` command line argument (see next point).
+2. Start PGAdapter with the additional command line argument `-e <host:port>` with the host name and
+   port number where the emulator is running. This is only necessary if the emulator is not running
+   on `localhost:9010`. This will typically be the case if both PGAdapter and the emulator are both
+   running in separate Docker containers.
+
+### Example: Running PGAdapter in a Docker Container
+
+When running PGAdapter in a Docker container, PGAdapter must have network access to the Cloud
+Spanner Emulator. The easiest way to achieve this is by running both in Docker and connect them both
+to the same Docker network. This example uses Docker Compose to set up a Docker network and start
+both the emulator and PGAdapter.
+
+```shell
+cat <<EOT > docker-compose.yml
+version: "3.9"
+services:
+  emulator:
+    image: "gcr.io/cloud-spanner-emulator/emulator"
+    pull_policy: always
+    container_name: spanner-emulator
+    ports:
+      - "9010:9010"
+      - "9020:9020"
+  pgadapter:
+    depends_on:
+      emulator:
+        condition: service_started
+    image: "gcr.io/cloud-spanner-pg-adapter/pgadapter"
+    pull_policy: always
+    container_name: pgadapter-connected-to-emulator
+    command:
+      - "-p test-project"
+      - "-i test-instance"
+      - "-r autoConfigEmulator=true"
+      - "-e emulator:9010"
+      - "-c \"\""
+      - "-x"
+    ports:
+      - "5432:5432"
+EOT
+docker compose up -d
+sleep 2
+psql -h localhost -p 5432 -d test-database
+```
+
+Run `docker compose down` to stop both the emulator and PGAdapter.
+
+### Example: Running PGAdapter as a Java Application
+
+This script does the following:
+1. Pulls and starts the Cloud Spanner Emulator Docker image.
+2. Downloads the latest version of PGAdapter and unpacks this to the current directory.
+3. Starts PGAdapter and instructs it to automatically configure a connection to the emulator. Any
+   project, instance, or database that is specified in a connection string to PGAdapter will
+   automatically be created on the emulator. PGAdapter by default assumes that the emulator is
+   running on `localhost:9010`.
+4. Sleep 2 seconds to wait for PGAdapter to start up. Then run `psql` against PGAdapter, which again
+   connects to the emulator.
+
+```shell
+docker pull gcr.io/cloud-spanner-emulator/emulator
+docker run -d -p 9010:9010 -p 9020:9020 gcr.io/cloud-spanner-emulator/emulator
+wget https://storage.googleapis.com/pgadapter-jar-releases/pgadapter.tar.gz \
+  && tar -xzvf pgadapter.tar.gz
+java -jar pgadapter.jar -p test-project -i test-instance -c "" -r autoConfigEmulator=true > /dev/null 2>&1 &
+sleep 2
+psql -h localhost -p 5432 -d test-database
+```
+
+## Using the SPANNER_EMULATOR_HOST environment variable
+PGAdapter also respects the `SPANNER_EMULATOR_HOST` environment variable. Setting this on the system
+where PGAdapter runs will instruct PGAdapter to connect to the emulator specified in the variable.
+
+Using this option requires that you manually create the instance and database that you want
+PGAdapter to connect to before actually making the connection. The `autoConfigEmulator=true` option
+described above does this automatically for you.