diff --git a/guides/admin/storage.md b/guides/admin/storage.md
new file mode 100644
index 000000000..2838e0987
--- /dev/null
+++ b/guides/admin/storage.md
@@ -0,0 +1,44 @@
+---
+title: Storage
+description: Learn about storage in workspaces.
+---
+
+Coder differentiates between system-installed files and user-installed files.
+System-installed files are stored in `/user/`, while user-installed files are
+located in the root directory `~`.
+
+Conventionally, Coder places anything installed with `apt` or `yum` or similar
+with the system-installed files. This is considered ephemeral storage in Coder
+workspaces, and we recommend that you install these using `docker build` and
+have them in your image.
+
+Conversely, things installed via `npm`, Java dependencies, Ruby bundles, or
+similar, belong in the project folder (which is the `~`) so that it persists in
+Coder workspaces.
+
+## Storage allocation for workspaces
+
+Coder allows users to choose how much storage to allocate to their workspace.
+
+Ephemeral storage (where system-installed files are located) is available to
+you, but we don't recommend that you use this too often. Kubernetes enforces
+some limits on using this storage, and exceeding certain bounds could
+potentially lead to eviction in some clusters.
+
+Instead, we recommend installing everything a user needs in the image, including
+build steps, so that they can be shared across workspaces. For example, if you
+have multiple users start base images and install the same five things
+(e.g., Node.js, CLIs, etc.), these things get placed in ephemeral storage, and
+none of it is shared across workspaces.
+
+However, if you share some of the items and install them during `docker
+build`, the image cache layers have the apps in them, and they can be shared
+across workspaces. This also has the benefit of speeding up the workspace build
+process.
+
+The only things we recommend placing in your workspace storage are the contents
+of your Git repos and any generated artifacts.
+
+If you're using Node.js or Go, you'll see that these install many items in your
+persistent user directory to make capabilities like `npx` persist (though these
+are project-specific items).
diff --git a/manifest.json b/manifest.json
index aabf16b13..4c9c7fecf 100644
--- a/manifest.json
+++ b/manifest.json
@@ -329,6 +329,9 @@
             {
               "path": "./guides/admin/shared-security.md"
             },
+            {
+              "path": "./guides/admin/storage.md"
+            },
             {
               "path": "./guides/admin/usage-monitoring.md"
             }