diff --git a/documentation/toaster-manual/toaster-manual-setup-and-use.xml b/documentation/toaster-manual/toaster-manual-setup-and-use.xml
index 3ac1654cfa..89b8b524a8 100644
--- a/documentation/toaster-manual/toaster-manual-setup-and-use.xml
+++ b/documentation/toaster-manual/toaster-manual-setup-and-use.xml
@@ -328,14 +328,35 @@
 
                         <para>
                             The next line sets the Toaster root directory
-                            <filename>TOASTER_DIR</filename>, and the location of
-                            the Toaster configuration file <filename>TOASTER_CONF</filename>,
-                            relative to the root directory. For more information on the
-                            Toaster configuration file see the
-                            "<link linkend='toaster-json-files'>JSON Files</link>"
+                            <filename>TOASTER_DIR</filename> and the location of
+                            the Toaster configuration file
+                            <filename>TOASTER_CONF</filename>, which is
+                            relative to the Toaster root directory
+                            <filename>TOASTER_DIR</filename>.
+                            For more information on the Toaster configuration file
+                            <filename>TOASTER_CONF</filename>, see the
+                            <link linkend='toaster-json-files'>JSON Files</link>
                             section of this manual.
                         </para>
 
+                        <para>
+                            This line also runs the <filename>checksettings</filename>
+                            command, which configures the location of the Toaster
+                            <ulink url='&YOCTO_DOCS_DEV_URL;#build-directory'>Build directory</ulink>.
+                            The Toaster root directory <filename>TOASTER_DIR</filename>
+                            determines where the Toaster build directory
+                            is created on the file system.
+                            In the example above,
+                            <filename>TOASTER_DIR</filename> is set as follows:
+                            <literallayout class="monospaced">
+     /var/www/toaster/poky
+                            </literallayout>
+                            This setting causes the Toaster build directory to be:
+                            <literallayout class="monospaced">
+     /var/www/toaster/poky/build
+                            </literallayout>
+                        </para>
+
                         <para>
                             Finally, the <filename>collectstatic</filename> command
                             is a Django framework command that collects all the