diff --git a/README.md b/README.md
index 26bbe75..63c3914 100644
--- a/README.md
+++ b/README.md
@@ -26,9 +26,10 @@
 for the install.  As mentioned above, install Ansible on the head node and check out this repository.
 
 The playbooks assume that a bridge called *mgmtbr* on the head node is connected to the management
-network.  Note that also there must be a DHCP server on the management network that can:
- 1. hand out IP addresses to VMs
- 2. resolve VM names to IP addresses on the head node
+network.  Note that also there must be a DHCP server on the management network that:
+ 1. hands out IP addresses to VMs connected to *mgmtbr*
+ 2. resolves VM names to IP addresses
+ 3. is configured as a resolver on the head and compute nodes
 
 If you need to set up `dnsmasq` to do this, 
 take a look at [this example](files/etc/dnsmasq.d/cord).