diff --git a/tests/README b/tests/README
index 2dd29787dda2..6868c7f99db8 100644
--- a/tests/README
+++ b/tests/README
@@ -1,11 +1,20 @@
-$NetBSD: README,v 1.3 2012/02/13 08:55:20 wiz Exp $
+$NetBSD: README,v 1.4 2012/05/18 15:36:21 jruoho Exp $
 
-When adding new tests, please try to follow the directory structure of
-the real source tree. For instance, interfaces available via the C library
-should follow:
+When adding new tests, please try to follow the following conventions.
+
+1. For library routines, including system calls, the directory structure of
+   the tests should follow the directory structure of the real source tree.
+   For instance, interfaces available via the C library should follow:
 
 	src/lib/libc/gen -> src/tests/lib/libc/gen
 	src/lib/libc/sys -> src/tests/lib/libc/sys
+	...
 
-Equivalently, tests for a program residing in src/usr.bin/program should be
-added to the src/tests/usr.bin/program subdirectory.
+2. Equivalently, all tests for userland utilities should try to follow their
+   location in the source tree. If this can not be satisfied, the tests for
+   a utility should be located under the directory to which the utility is
+   installed. Thus, a test for env(1) should go to src/tests/usr.bin/env.
+   Likewise, a test for tcpdump(8) should be in src/tests/usr.sbin/tcpdump,
+   even though the source code for the program is located under src/external.
+
+3. Otherwise use your own discretion.