diff --git a/packages/docs/docs/state-management.md b/packages/docs/docs/state-management.md
index cd62f75..bcb0c49 100644
--- a/packages/docs/docs/state-management.md
+++ b/packages/docs/docs/state-management.md
@@ -18,6 +18,55 @@ scopes. The usual pattern is:
 core data model and transformation APIs belong to `effect-lens`, so check the
 `effect-lens` documentation for the full Lens/Subscribable API.
 
+## Where To Store State
+
+State can live pretty much anywhere: in a service, in a layer, in a component
+scope, or in plain React state. Pick the owner based on who needs the state.
+
+If state is shared by multiple components or belongs to application logic, store
+it in an Effect service:
+
+```tsx
+import { Effect, SubscriptionRef } from "effect"
+import { Component, Lens, Subscribable } from "effect-fc"
+
+class CounterState extends Effect.Service<CounterState>()("CounterState", {
+  effect: Effect.gen(function* () {
+    const count = Lens.fromSubscriptionRef(yield* SubscriptionRef.make(0))
+
+    return { count } as const
+  }),
+}) {}
+
+const CounterValueView = Component.make("CounterValue")(function* () {
+  const state = yield* CounterState
+  const [count] = yield* Subscribable.useAll([state.count])
+
+  return <p>Count: {count}</p>
+})
+```
+
+If state belongs to a single Effect-FC component instance but still benefits
+from Lens/Subscribable APIs, create it with `Component.useOnMount`:
+
+```tsx
+import { Effect, SubscriptionRef } from "effect"
+import { Component, Lens, Subscribable } from "effect-fc"
+
+const LocalCounterView = Component.make("LocalCounter")(function* () {
+  const countLens = yield* Component.useOnMount(() =>
+    Effect.map(SubscriptionRef.make(0), Lens.fromSubscriptionRef),
+  )
+  const [count] = yield* Subscribable.useAll([countLens])
+
+  return <p>Count: {count}</p>
+})
+```
+
+For simple UI state that is not shared and does not need Effect integration,
+prefer regular React state. A local "show details" toggle is usually better as
+`React.useState(false)` than as a Lens.
+
 ## Subscribables
 
 A `Subscribable<A>` is reactive state with a current value and a stream of
@@ -43,9 +92,12 @@ class CounterState extends Effect.Service<CounterState>()("CounterState", {
 const CounterReadOnlyView = Component.make("CounterReadOnly")(
   function* () {
     const state = yield* CounterState
-    const [doubled] = yield* Subscribable.useAll([state.doubled])
+    const [count, doubled] = yield* Subscribable.useAll([
+      state.count,
+      state.doubled,
+    ])
 
-    return <p>Doubled: {doubled}</p>
+    return <p>Count: {count}, doubled: {doubled}</p>
   },
 )
 ```