diff --git a/README.md b/README.md
index 66498e9e..7127a729 100644
--- a/README.md
+++ b/README.md
@@ -94,7 +94,9 @@ working, working, working on the [TOPIC] branch ...
 
     * misc/ - configuration files for Compass server setup
 
-    * conf/ - configuration files related to newly supported target systems will be added here.
+    * conf/ - legacy configuration files related to supported target systems are stored here.
+    
+    * plugins/ - new configuration files and/or package installers will be added here (see plugins/README.md)
 
 Code Structure in Runtime:
     ![alt text](./imgs/runtime_code_path.jpg "Modular Components")
diff --git a/plugins/README.md b/plugins/README.md
new file mode 100644
index 00000000..e04c005a
--- /dev/null
+++ b/plugins/README.md
@@ -0,0 +1,30 @@
+Compass Plugins 
+===============
+
+## Overview
+
+
+Originally, all the configuration files of different target systems for adapter (flavor, os etc) are stored together in conf/adapter (flave, os, etc) directory, there are several problems of this mechanism:
+1) it is difficult for compass core install.sh to install configuration files for a specific target systems.
+2) it is difficult to distribute configuration files for new target system on an already installed compass system.
+The new mechanism is to put each or several related target systems configuration files in a directory, for example, the followng chef_installer
+directory under plugins directory will contain all the configuration files for the target systems which will be installed by chef package installer, another use case is, you can put a directory named kilo to include all the configuration files related to kilo. For chef installer
+we also move the implementation and tests to plugins directory.
+
+### Directories
+
+
+    * plugins/ - contains all plugins.
+
+        *  chef_installer/ - contains Chef Installer related configurtion, implementation and unit test files.
+
+                  * adapter/         - contains adapter files related for target systems which will be installed by chef.
+
+                  * flavor/          - contains flavor files related for target system which will be installed by chef.
+                  .
+                  .
+                  .
+                  
+                  * implementation/  - contains chef package installer python files.
+                  
+                  * tests/ -           contains unit tests for chef package installer.