-To create a template, simply add a template directive to a page, and page will
-provide a link that can be used to create the template. The template is a
-regular wiki (.mdwn) page, **located in the `templates/` directory** under source control. Nothing to do with **templatedir** from your ikiwiki configuration.
+To create a template, simply add a template directive to a page, and the
+page will provide a link that can be used to create the template. The template
+is a regular wiki page, located in the `templates/` subdirectory inside
+the source directory of the wiki.
+
+(Alternatively, templates can be stored in a directory outside the wiki,
+as files with the extension ".tmpl".
+By default, these are searched for in `/usr/share/ikiwiki/templates`;
+the `templatedir` setting can be used to make another directory be searched
+first.)