diff --git a/documentation/dev-manual/dev-manual-newbie.xml b/documentation/dev-manual/dev-manual-newbie.xml
index 0bc0be2164..c3df1c2958 100644
--- a/documentation/dev-manual/dev-manual-newbie.xml
+++ b/documentation/dev-manual/dev-manual-newbie.xml
@@ -132,6 +132,44 @@
         environment might find helpful.
         Some terms are universal but are included here just in case:
     <itemizedlist>
+        <listitem><para><emphasis>The Yocto Project Files:</emphasis>
+            This term refers to the directory structure created as a result of downloading 
+            and unpacking a Yocto Project release tarball or setting up a Git repository
+            by cloning <filename>git://git.yoctoproject.org/poky</filename>.</para>
+            <para>The Yocto Project files contain BitBake, Documentation, metadata and 
+            other files that all support the development environment. 
+            Consequently, you must have the Yocto Project files in place on your development 
+            system in order to do any development using the Yocto Project.</para>
+            <para>The name of the top-level directory of the Yocto Project file structure  
+            is derived from the Yocto Project release tarball.
+            For example, downloading and unpacking <filename>poky-edison-6.0.tar.bz2</filename>
+            results in a Yocto Project source tree whose Yocto Project source directory is named 
+            <filename>poky-edison-6.0</filename>.
+            If you create a Git repository, then you can name the repository anything you like.</para>
+            <para>You can find instruction on how to set up the Yocto Project files on your 
+            host development system by reading 
+            the 
+            "<ulink url='http://www.yoctoproject.org/docs/1.1/dev-manual/dev-manual.html#getting-setup'>Getting
+            Setup</ulink>" section in
+            <ulink url='http://www.yoctoproject.org/docs/1.1/dev-manual/dev-manual.html'>
+            The Yocto Project Development Manual</ulink>.</para></listitem>
+        <listitem><para><emphasis>Yocto Project Build Tree:</emphasis>
+            This term refers to the area where the Yocto Project builds images.  
+            The area is created when you <filename>source</filename> the Yocto Project setup 
+            environment script that is found in the Yocto Project files area. 
+            (e.g. <filename>oe-init-build-env</filename>).
+            You can create the Yocto Project build tree anywhere you want on your 
+            development system.
+            Here is an example that creates the tree in <filename>mybuilds</filename> 
+            and names the Yocto Project build directory <filename>YP-6.0</filename>:
+            <literallayout class='monospaced'> 
+     $ source poky-edison-6.0/oe-init-build-env $HOME/mybuilds/YP-6.0
+            </literallayout>
+            If you don't specifically name the build directory, BitBake creates it 
+            in the current directory and uses the name <filename>build</filename>.
+            Also, if you supply an existing directory, then BitBake uses that 
+            directory as the Yocto Project build directory and populates the build tree
+            beneath it.</para></listitem>
         <listitem><para><emphasis>Image</emphasis> - An image is the result produced when 
             BitBake processes a given collection of recipes and related metadata.
             Images are the binary output that runs on specific hardware and for specific