diff --git a/docs/upgrade/upgrade-0.16.rst b/docs/upgrade/upgrade-0.16.rst
index aca08bfa78c77c2e6a4e7267101d9ea04cc7582a..2fa23ab1d54c12905c09ec39d706d4ebacf431bd 100644
--- a/docs/upgrade/upgrade-0.16.rst
+++ b/docs/upgrade/upgrade-0.16.rst
@@ -11,7 +11,7 @@ The upgrade to v0.16 consists in the following steps:
 
 2. Upgrade packages, migrate the databases and configure settings.
 
-3. __placeholder__
+3. Inspect and adjust resource limits.
 
 4. Bring up all services.
 
@@ -108,9 +108,56 @@ The upgrade to v0.16 consists in the following steps:
     pithos-host$ pithos-migrate upgrade head
 
 
-3. __placeholder__
-==================
+3. Inspect and adjust resource limits
+=====================================
 
+Synnefo 0.16 brings significant changes at the project mechanism. Projects
+are now viewed as a source of finite resources, instead of a means to
+accumulate quota. They are the single source of resources, and quota are now
+managed at a project/member level.
+
+System-provided base quota are now handled through special purpose
+user-specific *base projects*, identified with the same UUID as the user.
+These have been created during the database migration process. They are
+included in the project listing with::
+
+  snf-manage project-list --base-projects
+
+All projects must specify quota limits for all registered resources. Default
+values have been set for all resources, listed with::
+
+  astakos-host$ snf-manage resource-list
+
+Column `base_default` (previously known as `default_quota`) provides the
+skeleton for the quota limits of user-specific base projects. Column
+`project_default` is new and acts as skeleton for `applied` (non-base)
+projects (i.e., for resources not specified in a project application).
+Project defaults have been initialized during migration based on the base
+default values: they have been set to `inf` if `base_default` is also `inf`,
+otherwise set to zero.
+
+This default, affecting all future projects, can be modified with::
+
+  astakos-host$ snf-manage resource-modify <name> --project-default <value>
+
+Till now a project definition contained one quota limit per resource: the
+maximum that a member can get from the project. A new limit is introduced:
+the grand maximum a project can provide to its members. This new project
+limit is initialized during migration as `max members * member limit` (if
+`max members` is not set, the double of current active members is assumed).
+
+Existing projects can now be modified directly through the command line. In
+order to change a project's resource limits, run::
+
+  astakos-host$ snf-manage project-modify <project_uuid> --limit <resource_name> <member_limit> <project_limit>
+
+With the new mechanism, when a new resource is allocated (e.g., a VM or a
+Pithos container is created), it is also associated with a project besides
+its owner. The migration process has associated existing resources with
+their owner's base project. Note that users who had made use of projects to
+increase their quota may end up overlimit on some resources of their base
+projects and will need to *reassign* some of their reserved resources to
+another project in order to overcome this restriction.
 
 4. Bring all services up
 ========================