diff --git a/NEWS b/NEWS
index 8510b5e6..9c6849d5 100644
--- a/NEWS
+++ b/NEWS
@@ -22,6 +22,19 @@
   - support added for osc search 'perl(Foo::Bar)' 
   - New "service" command to run source services locally or trigger a re-run on the server.
   - setlinkrev is setting now the revision to xsrcmd5 by default to avoid later breakage on indirect links by default.
+
+  NOTE:
+   Due to the rewrite of the working copy handling osc might fail with the
+   following error:
+     Your working copy '.' is in an inconsistent state.
+     Please run 'osc repairwc .' (Note this might _remove_
+     files from the .osc/ dir). Please check the state
+     of the working copy afterwards (via 'osc status .')
+   Simply run "osc repairwc" which might fetch files from the api
+   or delete some files from the storedir (.osc/). It won't touch
+   locally modified files. For more information see section
+   "WORKING COPY INCONSISTENT" in the README.
+
 #
 # Feature which requires OBS 2.1
 #
diff --git a/README b/README
index 578416da..6409cdb0 100644
--- a/README
+++ b/README
@@ -129,6 +129,24 @@ from ~/.oscrc and you will be asked for credentials again, which will be then
 stored in the keyring application.
 
 
+WORKING COPY INCONSISTENT (only affects version >= 0.130)
+
+osc's working copy handling was rewritten in 0.130. Thus some
+consistency checks were added. As a result osc might complain
+that some old working copies are in an inconsistent state:
+ Your working copy '.' is in an inconsistent state.
+ Please run 'osc repairwc .' (Note this might _remove_
+ files from the .osc/ dir). Please check the state
+ of the working copy afterwards (via 'osc status .')
+To fix this simply run "osc repairwc ." as suggested in the
+error message. Note that "osc repairwc ." might need to contact
+the api in order to fetch some missing files. Also it might remove
+some files from the storedir (.osc/) but it won't touch any locally
+modified files.
+If it DOES NOT fix the problem please create a bug report and attach
+your working copy to the bug (if possible).
+
+
 USAGE EXAMPLES:
 (online at http://en.opensuse.org/openSUSE:OSC )