diff --git a/README.md b/README.md
index b4394518c..26bf3410b 100644
--- a/README.md
+++ b/README.md
@@ -34,6 +34,7 @@ Tarantool-based applications.
   * [Working with application templates](#Working-with-application-templates)
   * [Working with tt daemon (experimental)](#working-with-tt-daemon-experimental)
   * [Setting Tarantool configuration parameters via environment variables](#setting-tarantool-configuration-parameters-via-environment-variables)
+* [Migration from older TT versions](doc/migration_from_older_versions.md)
 * [Commands](#commands)
 
 ## Intro
diff --git a/doc/migration_from_older_versions.md b/doc/migration_from_older_versions.md
new file mode 100644
index 000000000..41bb5cb11
--- /dev/null
+++ b/doc/migration_from_older_versions.md
@@ -0,0 +1,61 @@
+# Migration from older versions
+
+This file contains information on how to migrate existing projects from
+one `tt` version to a newer one. Additionally to migration hints, it
+contains breaking changes descriptions.
+
+## Contents
+
+* [1.3.1 -> 2.0.0](#1.3.1-->-2.0.0)
+
+## 1.3.1 -> 2.0.0
+
+### New format of tt config file
+
+`tt` 2.0.0 configuration file format is incompatible with previous version:
+- Root `tt` section is removed.
+- Common environment configuration is moved to the `env` section.
+All relative paths in this section are relative to the config file location.
+- Relative path in `app` section are relative to the application directory.
+
+### New runtime artifacts layout
+
+Runtime artifacts layout is changed:
+- Relative paths are relative to the application directory. In case of
+single script instance, a directory is created in the instances
+enabled directory.
+- Since relative paths already contains an application name,
+only instance name is appended to the result directory. Here is an
+example of 2.0.0 default layout for a local environment:
+
+```
+instances.enabled/app/
+├── init.lua
+├── instances.yml
+└── var
+    ├── lib
+    │   ├── inst1
+    │   └── inst2
+    ├── log
+    │   ├── inst1
+    │   └── inst2
+    └── run
+        ├── inst1
+        └── inst2
+```
+
+Moving artifacts from 1.* versions:
+- Create artifacts directories in application dir: var/lib, var/log, var/run.
+- Copy instance sub-directories from 1.* environment to application
+dir. Data artifacts copying example:
+`cp -r <env_dir>/var/lib/app/* <instances_enabled>/app/var/lib/`
+
+Absolute paths are not affected by these layout changes, because an application
+name is always appended for them.
+
+### Working directory is changed
+
+Instance process working directory is changed to the application directory.
+It was `tt` current working directory previously. So, if the instance
+code work with files using relative paths, these files must be moved/copied
+to the application directory.