diff --git a/pep-0526.txt b/pep-0526.txt
index 84d4f5d93d8..ba31b53b560 100644
--- a/pep-0526.txt
+++ b/pep-0526.txt
@@ -142,7 +142,7 @@ it a local::
   def f():
       a: int
       print(a)  # raises UnboundLocalError
-      # Commenting out the ``a: int`` makes it a NameError!
+      # Commenting out the ``a: int`` makes it a NameError.
 
 as if the code were::
 
@@ -150,7 +150,7 @@ as if the code were::
       if False: a = 0
       print(a)  # raises UnboundLocalError
 
-Any duplicate type annotations will be ignored. Although static type
+Any duplicate type annotations will be ignored. However, static type
 checkers will issue a warning for annotations of the same variable
 by a different type::
 
@@ -222,6 +222,23 @@ As a matter of convenience, instance attributes can be annotated in
       def __init__(self, content):
           self.content: T = content
 
+Annotating expressions
+**********************
+
+If the initial value is specified, then the target of the annotation can be
+any valid assignment target::
+
+  class Cls:
+      pass
+
+  c = Cls
+  c.x: int = 0  # Annotates ``c.x`` with ``int``..
+  c.y: int  # Invalid syntax: no initial value was specified!
+
+  d = {}
+  d['a']: int = 0  # Annotates ``d['a']`` with ``int``.
+  d['b']: int  # Invalid again.
+
 Where annotations aren't allowed
 ********************************
 
@@ -270,10 +287,26 @@ Changes to standard library and documentation
 Runtime effects of type annotations
 ===================================
 
-Variable annotations that are found at a module or class level are
-evaluated and stored in ``__annotations__`` attribute of that module or
-class as a dictionary mapping from names to evaluated annotations.
-Here is an example::
+As stated under "Variable Annotations", annotating a local variable will cause
+the interpreter to treat it as a local, even if it was never assigned to.
+
+If a variable annotation is for a local variable, the annotation will not be
+evaluated::
+
+  def f():
+      x: NonexistentName  # No error.
+
+However, if it is at a module or class level, then the type *will* be
+evaluated::
+
+  x: NonexistentName  # Error!
+  class X:
+      attr: NonexistentName  # Error!
+
+In addition, at the module, or class level, if the item being annotated is a
+simple name, then it and the annotation will be stored in the
+``__annotations__`` attribute of that module or class as a dictionary mapping
+from names to evaluated annotations. Here is an example::
 
   from typing import Dict
   class Player: