diff --git a/.example.env b/.example.env
index eaf2e252e..cff89aa26 100644
--- a/.example.env
+++ b/.example.env
@@ -3,4 +3,10 @@ SUPABASE_API_URL=http://localhost:54321
 
 STRIPE_SECRET_KEY=sk_test_xxx
 STRIPE_WEBHOOK_SECRET=xxx
-STRIPE_PREMIUM_PLAN_PRICE_ID=xxx
\ No newline at end of file
+
+STRIPE_PREMIUM_PLAN_PRICE_ID=xxx
+
+# Only used for Docker deployments
+# Update before a new docker compose build is done
+# Value is result of 'git rev-parse' command
+DENO_DEPLOYMENT_ID={{ git rev-parse HEAD }}
diff --git a/README.md b/README.md
index 339d00dd7..f48091a74 100644
--- a/README.md
+++ b/README.md
@@ -246,6 +246,7 @@ services:
     container_name: deno-sasskit
     image: deno-image
    environment:
+     - DENO_DEPLOYMENT_ID=${DENO_DEPLOYMENT_ID}
      - SUPABASE_ANON_KEY=${SUPABASE_ANON_KEY}
      - SUPABASE_API_URL=${SUPABASE_API_URL}
      - STRIPE_SECRET_KEY=${STRIPE_SECRET_KEY}
@@ -255,6 +256,18 @@ services:
       - "8000:8000"
 ```
 
+The values of the environmental variables are pulled from the `.env` file.
+
+The `DENO_DEPLOYMENT_ID` variable is needed for Docker deployment of a Deno
+Fresh app for caching to work properly. Its value needs to be a unique id tied
+to the deployment. We recommend using the SHA1 commit hash, which can be
+obtained from the following command run in the repo's root folder:
+
+```sh
+# get the SHA1 commit hash of the current branch
+git rev-parse HEAD
+```
+
 ### Automatic Deployment with Deno Deploy
 
 These steps show you how to deploy your SaaS app close to your users at the edge