diff --git a/changelog.d/13029.doc b/changelog.d/13029.doc
new file mode 100644
index 0000000000..d398f0fdbe
--- /dev/null
+++ b/changelog.d/13029.doc
@@ -0,0 +1 @@
+Add an explanation of the `--report-stats` argument to the docs.
diff --git a/docs/setup/installation.md b/docs/setup/installation.md
index 5bdefe2bc1..1580529fd1 100644
--- a/docs/setup/installation.md
+++ b/docs/setup/installation.md
@@ -232,7 +232,9 @@ python -m synapse.app.homeserver \
     --report-stats=[yes|no]
 ```
 
-... substituting an appropriate value for `--server-name`.
+... substituting an appropriate value for `--server-name` and choosing whether
+or not to report usage statistics (hostname, Synapse version, uptime, total
+users, etc.) to the developers via the `--report-stats` argument.
 
 This command will generate you a config file that you can then customise, but it will
 also generate a set of keys for you. These keys will allow your homeserver to