diff --git a/README.rst b/README.rst
index 2b331b6..c1a2ca3 100644
--- a/README.rst
+++ b/README.rst
@@ -15,6 +15,12 @@ developed to power Django Channels.
 It supports automatic negotiation of protocols; there's no need for URL
 prefixing to determine WebSocket endpoints versus HTTP endpoints.
 
+.. note::
+
+    Daphne 2 is not compatible with Channels 1.x applications, only with
+    Channels 2.x and other ASGI applications. Install a 1.x version of Daphne
+    for Channels 1.x support.
+
 
 Running
 -------