diff --git a/README.md b/README.md
index b39bfb4fa..ad56daf5e 100644
--- a/README.md
+++ b/README.md
@@ -75,8 +75,9 @@ distro specific commands (e.g.: `debootstrap` for Debian or `yum` for CentOS).
 The `dracut` build method uses the distro-agnostic tool `dracut` to obtain the same goal.
 
 By default components are run on the host system. However, some components
-offer the ability to run from within Docker (for ease of setup) by setting the
-`USE_DOCKER=true` variable.
+offer the ability to run from within a container (for ease of setup) by setting the
+`USE_DOCKER=true` or `USE_PODMAN=true` variable. If both are set, `USE_DOCKER=true`
+takes precedence over `USE_PODMAN=true`.
 
 For more detailed information, consult the documentation for a particular component.