diff --git a/docs/frequently-asked-questions.rst b/docs/frequently-asked-questions.rst
index 5df5313c1..387f16fe8 100644
--- a/docs/frequently-asked-questions.rst
+++ b/docs/frequently-asked-questions.rst
@@ -305,7 +305,7 @@ of variable it concerns:
 
 * state variables are always in storage
 * function arguments are always in memory
-* local variables are always in stack
+* local variables are always in the stack but reference storage
 
 Example::