diff --git a/.env.template b/.env.template
index 286303d7..4694aca0 100644
--- a/.env.template
+++ b/.env.template
@@ -17,3 +17,4 @@ OPENAI_AZURE_EMBEDDINGS_DEPLOYMENT_ID=deployment-id-for-azure-embeddigs
 IMAGE_PROVIDER=dalle
 HUGGINGFACE_API_TOKEN=
 USE_MAC_OS_TTS=False
+MEMORY_BACKEND=local
diff --git a/README.md b/README.md
index dc3386f5..2900daa9 100644
--- a/README.md
+++ b/README.md
@@ -230,6 +230,17 @@ export PINECONE_ENV="Your pinecone region" # something like: us-east4-gcp
 
 ```
 
+
+## Setting Your Cache Type
+
+By default Auto-GPT is going to use LocalCache instead of redis or Pinecone.
+
+To switch to either, change the `MEMORY_BACKEND` env variable to the value that you want:
+
+`local` (default) uses a local JSON cache file
+`pinecone` uses the Pinecone.io account you configured in your ENV settings
+`redis` will use the redis cache that you configured
+
 ## View Memory Usage
 
 1. View memory usage by using the `--debug` flag :)