diff --git a/core/INSTALL.txt b/core/INSTALL.txt
index b753f3a..e52e5d7 100644
--- a/core/INSTALL.txt
+++ b/core/INSTALL.txt
@@ -313,13 +313,14 @@ MULTISITE CONFIGURATION
 A single Drupal installation can host several Drupal-powered sites, each with
 its own individual configuration.
 
+For this to work you need a configured sites/sites.php file discussed below.
+
 Additional site configurations are created in subdirectories within the 'sites'
 directory. Each subdirectory must have a 'settings.php' file, which specifies
-the configuration settings. The easiest way to create additional sites is to
-copy the 'default' directory and modify the 'settings.php' file as appropriate.
-The new directory name is constructed from the site's URL. The configuration for
-www.example.com could be in 'sites/example.com/settings.php' (note that 'www.'
-should be omitted if users can access your site at http://example.com/).
+the configuration settings. Make a copy of sites/default/default.settings.php 
+to your new multisite directory.
+
+  $ cp sites/default/defaults.settings.php sites/my-site/settings.php
 
 Sites do not have to have a different domain. You can also use subdomains and
 subdirectories for Drupal sites. For example, example.com, sub.example.com, and
@@ -331,17 +332,14 @@ for a configuration such as this would look like the following:
   sites/sub.example.com/settings.php
   sites/sub.example.com.site3/settings.php
 
-When searching for a site configuration (for example www.sub.example.com/site3),
-Drupal will search for configuration files in the following order, using the
-first configuration it finds:
+Make a copy of the example.sites.php file:
 
-  sites/www.sub.example.com.site3/settings.php
-  sites/sub.example.com.site3/settings.php
-  sites/example.com.site3/settings.php
-  sites/www.sub.example.com/settings.php
-  sites/sub.example.com/settings.php
-  sites/example.com/settings.php
-  sites/default/settings.php
+  $ cp sites/example.sites.php sites/sites.php
+
+Make sure each entry in your sites/ directory is registered in sites.php. For
+detailed information see the documentation in sites/example.sites.php
+
+Next follow the installation instruction for that particular directory.
 
 If you are installing on a non-standard port, the port number is treated as the
 deepest subdomain. For example: http://www.example.com:8080/ could be loaded