diff --git a/cluster-autoscaler/cloudprovider/clusterapi/README.md b/cluster-autoscaler/cloudprovider/clusterapi/README.md
index adf22919d34f..ff2843e775d4 100644
--- a/cluster-autoscaler/cloudprovider/clusterapi/README.md
+++ b/cluster-autoscaler/cloudprovider/clusterapi/README.md
@@ -79,6 +79,12 @@ in the staging namespace, belonging to the purple cluster, with the label owner=
 
 ## Connecting cluster-autoscaler to Cluster API management and workload Clusters
 
+> [!IMPORTANT]
+> `--cloud-config` is the flag for specifying a mount volume path to the kubernetes configuration (ie KUBECONFIG) to the cluster-autoscaler for communicating with the cluster-api management cluster for the purpose of scaling machines.
+
+> [!IMPORTANT]
+> ``--kubeconfig` is the flag for specifying a mount volume  path to the kubernetes configuration (ie KUBECONFIG) to the cluster-autoscaler for communicating with the cluster-api workload cluster for the purpose of watching Nodes and Pods. This flag can be affected by the desired topology for deploying the cluster-autoscaler, please see the diagrams below for more information.
+
 You will also need to provide the path to the kubeconfig(s) for the management
 and workload cluster you wish cluster-autoscaler to run against. To specify the
 kubeconfig path for the workload cluster to monitor, use the `--kubeconfig`