diff --git a/docs/README.md b/docs/README.md
index 1ac15221..4b5d0842 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -39,6 +39,14 @@ use namespaces (which are the equivalent to user/logins in Tailscale.com).
 
 Please check https://tailscale.com/kb/1018/acls/, and `./tests/acls/` in this repo for working examples.
 
+When using ACL's the Namespace borders are no longer applied. All machines
+whichever the Namespace have the ability to communicate with other hosts as
+long as the ACL's permits this exchange.
+
+The [ACLs](acls.md) document should help understand a fictional case of setting
+up ACLs in a small company. All concepts presented in this document could be
+applied outside of business oriented usage.
+
 ### Apple devices
 
 An endpoint with information on how to connect your Apple devices (currently macOS only) is available at `/apple` on your running instance.
diff --git a/docs/acls.md b/docs/acls.md
new file mode 100644
index 00000000..89e8b557
--- /dev/null
+++ b/docs/acls.md
@@ -0,0 +1,126 @@
+
+# ACLs use case example
+
+Let's build an example use case for a small business (It may be the place where
+ACL's are the most useful).
+
+We have a small company with a boss, an admin, two developers and an intern.
+
+The boss should have access to all servers but not to the users hosts. Admin
+should also have access to all hosts except that their permissions should be
+limited to maintaining the hosts (for example purposes). The developers can do
+anything they want on dev hosts, but only watch on productions hosts. Intern
+can only interact with the development servers.
+
+Each user have at least a device connected to the network and we have some
+servers.
+
+- database.prod
+- database.dev
+- app-server1.prod
+- app-server1.dev
+- billing.internal
+
+## Setup of the network
+
+Let's create the namespaces. Each user should have his own namespace. The users
+here are represented as namespaces.
+
+```bash
+headscale namespaces create boss
+headscale namespaces create admin1
+headscale namespaces create dev1
+headscale namespaces create dev2
+headscale namespaces create intern1
+```
+
+We don't need to create namespaces for the servers because the servers will be
+tagged. When registering the servers we will need to add the flag
+`--advertised-tags=tag:<tag1>,tag:<tag2>`, and the user (namespace) that is
+registering the server should be allowed to do it. Since anyone can add tags to
+a server they can register, the check of the tags is done on headscale server
+and only valid tags are applied. A tag is valid if the namespace that is
+registering it is allowed to do it.
+
+Here are the ACL's to implement the same permissions as above:
+
+```json
+{
+    // groups are collections of users having a common scope. A user can be in multiple groups
+    // groups cannot be composed of groups
+    "groups": {
+        "group:boss": ["boss"],
+        "group:dev": ["dev1","dev2"],
+        "group:admin": ["admin1"],
+        "group:intern": ["intern1"],
+    },
+    // tagOwners in tailscale is an association between a TAG and the people allowed to set this TAG on a server.
+    // This is documented [here](https://tailscale.com/kb/1068/acl-tags#defining-a-tag)
+    // and explained [here](https://tailscale.com/blog/rbac-like-it-was-meant-to-be/)
+    "tagOwners": {
+        // the administrators can add servers in production
+        "tag:prod-databases": ["group:admin"],
+        "tag:prod-app-servers": ["group:admin"],
+
+        // the boss can tag any server as internal
+        "tag:internal": ["group:boss"],
+
+        // dev can add servers for dev purposes as well as admins
+        "tag:dev-databases": ["group:admin","group:dev"],
+        "tag:dev-app-servers": ["group:admin", "group:dev"],
+
+        // interns cannot add servers
+    },
+    "acls": [
+        // boss have access to all servers
+        {"action":"accept",
+         "users":["group:boss"],
+         "ports":[
+            "tag:prod-databases:*",
+            "tag:prod-app-servers:*",
+            "tag:internal:*",
+            "tag:dev-databases:*",
+            "tag:dev-app-servers:*",
+            ]
+        },
+
+        // admin have only access to administrative ports of the servers
+        {"action":"accept",
+         "users":["group:admin"],
+         "ports":[
+            "tag:prod-databases:22",
+            "tag:prod-app-servers:22",
+            "tag:internal:22",
+            "tag:dev-databases:22",
+            "tag:dev-app-servers:22",
+            ]
+        },
+
+        // developers have access to databases servers and application servers on all ports
+        // they can only view the applications servers in prod and have no access to databases servers in production
+        {"action":"accept", "users":["group:dev"], "ports":[
+            "tag:dev-databases:*",
+            "tag:dev-app-servers:*",
+            "tag:prod-app-servers:80,443",
+            ]
+        },
+
+        // servers should be able to talk to database. Database should not be able to initiate connections to
+        // applications servers
+        {"action":"accept", "users":["tag:dev-app-servers"], "ports":["tag:dev-databases:5432"]},
+        {"action":"accept", "users":["tag:prod-app-servers"], "ports":["tag:prod-databases:5432"]},
+
+        // interns have access to dev-app-servers only in reading mode
+        {"action":"accept", "users":["group:intern"], "ports":["tag:dev-app-servers:80,443"]},
+
+        // We still have to allow internal namespaces communications since nothing guarantees that each user have
+        // their own namespaces.
+        {"action":"accept", "users":["boss"], "ports":["boss:*"]},
+        {"action":"accept", "users":["dev1"], "ports":["dev1:*"]},
+        {"action":"accept", "users":["dev2"], "ports":["dev2:*"]},
+        {"action":"accept", "users":["admin1"], "ports":["admin1:*"]},
+        {"action":"accept", "users":["intern1"], "ports":["intern1:*"]},
+    ]
+}
+```
+