diff --git a/client/ayon_core/settings/local_settings.md b/client/ayon_core/settings/local_settings.md
new file mode 100644
index 0000000000..6694bb60a8
--- /dev/null
+++ b/client/ayon_core/settings/local_settings.md
@@ -0,0 +1,79 @@
+# Structure of local settings
+- local settings do not have any validation schemas right now this should help to see what is stored to local settings and how it works
+- they are stored by identifier site_id which should be unified identifier of workstation
+- all keys may and may not available on load
+- contain main categories: `general`, `applications`, `projects`
+
+## Categories
+### General
+- ATM contain only label of site
+```json
+{
+    "general": {
+        "site_label": "MySite"
+    }
+}
+```
+
+### Applications
+- modifications of application executables
+- output should match application groups and variants
+```json
+{
+    "applications": {
+        "<app group>": {
+            "<app name>": {
+                "executable": "/my/path/to/nuke_12_2"
+            }
+        }
+    }
+}
+```
+
+### Projects
+- project specific modifications
+- default project is stored under constant key defined in `pype.settings.contants`
+```json
+{
+    "projects": {
+        "<project name>": {
+            "active_site": "<name of active site>",
+            "remote_site": "<name of remote site>",
+            "roots": {
+                "<site name>": {
+                    "<root name>": "<root dir path>"
+                }
+            }
+        }
+    }
+}
+```
+
+## Final document
+```json
+{
+    "_id": "<ObjectId(...)>",
+    "site_id": "<site id>",
+    "general": {
+        "site_label": "MySite"
+    },
+    "applications": {
+        "<app group>": {
+            "<app name>": {
+                "executable": "<path to app executable>"
+            }
+        }
+    },
+    "projects": {
+        "<project name>": {
+            "active_site": "<name of active site>",
+            "remote_site": "<name of remote site>",
+            "roots": {
+                "<site name>": {
+                    "<root name>": "<root dir path>"
+                }
+            }
+        }
+    }
+}
+```
\ No newline at end of file