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diff --git a/winsup/cygserver/README b/winsup/cygserver/README
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--- a/winsup/cygserver/README
+++ b/winsup/cygserver/README
@@ -12,6 +12,12 @@ What is Cygserver?
- XSI IPC Message Queues.
- XSI IPC Semaphores.
- XSI IPC Shared Memory.
+ - Allows non-privileged users to store obfuscated passwords in the
+ registry to be used for setuid(2) to create user tokens with network
+ credentials. This service is used by `passwd -R'. Using the stored
+ passwords in setuid(2) does not require running cygserver. The
+ registry storage is the same as Windows uses to store passwords for
+ accounts running Windows services.
Cygserver command line options: