diff --git a/docs/coverage.md b/docs/coverage.md
new file mode 100644
index 0000000000..bc613f8295
--- /dev/null
+++ b/docs/coverage.md
@@ -0,0 +1,58 @@
+# Setting up coverage
+
+As of Bazel 6, the Python toolchains and bootstrap logic supports providing
+coverage information using the `coverage` library.
+
+As of `rules_python` version `0.18.1`, builtin coverage support can be enabled
+when configuring toolchains.
+
+## Enabling `rules_python` coverage support
+
+Enabling the coverage support bundled with `rules_python` just requires setting an
+argument when registerting toolchains.
+
+For Bzlmod:
+
+```starlark
+python.toolchain(
+    "@python3_9_toolchains//:all",
+    configure_coverage_tool = True,
+)
+```
+
+For WORKSPACE configuration:
+
+```starlark
+register_python_toolchains(
+   register_coverage_tool = True,
+)
+```
+
+NOTE: This will implicitly add the version of `coverage` bundled with
+`rules_python` to the dependencies of `py_test` rules when `bazel coverage` is
+run. If a target already transitively depends on a different version of
+`coverage`, then behavior is undefined -- it is undefined which version comes
+first in the import path. If you find yourself in this situation, then you'll
+need to manually configure coverage (see below).
+
+## Manually configuring coverage
+
+To manually configure coverage support, you'll need to set the
+`py_runtime.coverage_tool` attribute. This attribute is a target that specifies
+the coverage entry point file and, optionally, client libraries that are added
+to `py_test` targets. Typically, this would be a `filegroup` that looked like:
+
+```starlark
+filegroup(
+  name = "coverage",
+  srcs = ["coverage_main.py"],
+  data = ["coverage_lib1.py", ...]
+)
+```
+
+Using `filegroup` isn't required, nor are including client libraries. The
+important behaviors of the target are:
+
+*   It provides a single output file OR it provides an executable output; this
+    output is treated as the coverage entry point.
+*   If it provides runfiles, then `runfiles.files` are included into `py_test`.