diff --git a/docs/misc/xenstore-ring.txt b/docs/misc/xenstore-ring.txt
index 2792d13530..dbc7335e24 100644
--- a/docs/misc/xenstore-ring.txt
+++ b/docs/misc/xenstore-ring.txt
@@ -69,6 +69,7 @@ Bit     Description
 -----------------------------------------------------------------
 0       Ring reconnection (see the ring reconnection feature below)
 1       Connection error indicator (see connection error feature below)
+2       WATCH can take a third parameter limiting its scope
 
 The "Connection state" field is used to request a ring close and reconnect.
 The "Connection state" field only contains valid data if the server has
diff --git a/docs/misc/xenstore.txt b/docs/misc/xenstore.txt
index d49a07db21..4bc262fd5d 100644
--- a/docs/misc/xenstore.txt
+++ b/docs/misc/xenstore.txt
@@ -176,7 +176,7 @@ SET_PERMS		<path>|<perm-as-string>|+?
 
 ---------- Watches ----------
 
-WATCH			<wpath>|<token>|?
+WATCH			<wpath>|<token>|[<depth>|]?
 	Adds a watch.
 
 	When a <path> is modified (including path creation, removal,
@@ -187,7 +187,11 @@ WATCH			<wpath>|<token>|?
 	matching watch results in a WATCH_EVENT message (see below).
 
 	The event's path matches the watch's <wpath> if it is an child
-	of <wpath>.
+	of <wpath>. This match can be limited by specifying <depth> (a
+	decimal value of 0 or larger): it denotes the directory levels
+	below <wpath> to consider for a match ("0" would not match for
+	a child of <wpath>, "1" would match only for a direct child,
+	etc.).
 
 	<wpath> can be a <path> to watch or @<wspecial>.  In the
 	latter case <wspecial> may have any syntax but it matches
@@ -198,7 +202,13 @@ WATCH			<wpath>|<token>|?
 				shutdown, and also on RELEASE
 				and domain destruction
 	<wspecial> events are sent to privileged callers or explicitly
-	via SET_PERMS enabled domains only.
+	via SET_PERMS enabled domains only. The semantics for a
+	specification of <depth> differ for generating <wspecial>
+	events: specifying "1" will report the related domid by using
+	@<wspecial>/<domid> for the reported path. Other <depth>
+	values are not supported.
+	For @releaseDomain it is possible to watch only for a specific
+	domain by specifying @releaseDomain/<domid> for the path.
 
 	When a watch is first set up it is triggered once straight
 	away, with <path> equal to <wpath>.  Watches may be triggered