diff --git a/doc/src/sgml/libpq.sgml b/doc/src/sgml/libpq.sgml
new file mode 100644
index 3829a14..6285dd0
*** a/doc/src/sgml/libpq.sgml
--- b/doc/src/sgml/libpq.sgml
*************** PGresult *PQprepare(PGconn *conn,
*** 2303,2310 ****
         <para>
          <function>PQprepare</> creates a prepared statement for later
          execution with <function>PQexecPrepared</>.  This feature allows
!         commands that will be used repeatedly to be parsed and planned just
!         once, rather than each time they are executed.
          <function>PQprepare</> is supported only in protocol 3.0 and later
          connections; it will fail when using protocol 2.0.
         </para>
--- 2303,2310 ----
         <para>
          <function>PQprepare</> creates a prepared statement for later
          execution with <function>PQexecPrepared</>.  This feature allows
!         commands to be executed repeatedly without being parsed and
!         planned each time;  see <xref linkend="SQL-PREPARE"> for details.
          <function>PQprepare</> is supported only in protocol 3.0 and later
          connections; it will fail when using protocol 2.0.
         </para>
diff --git a/doc/src/sgml/ref/prepare.sgml b/doc/src/sgml/ref/prepare.sgml
new file mode 100644
index dbce8f2..08916d3
*** a/doc/src/sgml/ref/prepare.sgml
--- b/doc/src/sgml/ref/prepare.sgml
*************** PREPARE <replaceable class="PARAMETER">n
*** 70,80 ****
    </para>
  
    <para>
!    Prepared statements have the largest performance advantage when a
!    single session is being used to execute a large number of similar
     statements. The performance difference will be particularly
!    significant if the statements are complex to plan or rewrite, for
!    example, if the query involves a join of many tables or requires
     the application of several rules. If the statement is relatively simple
     to plan and rewrite but relatively expensive to execute, the
     performance advantage of prepared statements will be less noticeable.
--- 70,80 ----
    </para>
  
    <para>
!    Prepared statements potentially have the largest performance advantage
!    when a single session is being used to execute a large number of similar
     statements. The performance difference will be particularly
!    significant if the statements are complex to plan or rewrite, e.g. 
!    if the query involves a join of many tables or requires
     the application of several rules. If the statement is relatively simple
     to plan and rewrite but relatively expensive to execute, the
     performance advantage of prepared statements will be less noticeable.
*************** PREPARE <replaceable class="PARAMETER">n
*** 123,148 ****
    </variablelist>
   </refsect1>
  
!  <refsect1>
    <title>Notes</title>
  
    <para>
!    If a prepared statement is executed enough times, the server may eventually
!    decide to save and re-use a generic plan rather than re-planning each time.
!    This will occur immediately if the prepared statement has no parameters;
!    otherwise it occurs only if the generic plan appears to be not much more
!    expensive than a plan that depends on specific parameter values.
!    Typically, a generic plan will be selected only if the query's performance
!    is estimated to be fairly insensitive to the specific parameter values
!    supplied.
    </para>
  
    <para>
     To examine the query plan <productname>PostgreSQL</productname> is using
!    for a prepared statement, use <xref linkend="sql-explain">.
     If a generic plan is in use, it will contain parameter symbols
     <literal>$<replaceable>n</></literal>, while a custom plan will have the
!    current actual parameter values substituted into it.
    </para>
  
    <para>
--- 123,165 ----
    </variablelist>
   </refsect1>
  
!  <refsect1 id="SQL-PREPARE-notes">
    <title>Notes</title>
  
    <para>
!    Prepared statements can optionally use generic plans rather than
!    re-planning with each set of supplied <command>EXECUTE</command> values.
!    This occurs immediately for prepared statements with no parameters;
!    otherwise it occurs only after five or more executions produce plans
!    whose estimated cost average (including planning overhead) is more
!    expensive than the generic plan cost estimate.  Once a generic plan is
!    chosen, it is used for the remaining lifetime of the prepared statement.
!    Using <command>EXECUTE</command> values which are rare can generate
!    custom plans that are so much cheaper than the generic plan, even after
!    adding planning overhead, that the generic plan might never be used.
!   </para>
! 
!   <para>
!    A generic plan assumes that each value supplied to
!    <command>EXECUTE</command> is one of the column's distinct values
!    and that column values are uniformly distributed.  For example,
!    if statistics record three distinct column values, a generic plan
!    assumes a column equality comparison will match 33% of processed rows.
!    Column statistics also allow generic plans to accurately compute the
!    selectivity of unique columns.  Comparisons on non-uniformly-distributed
!    columns and specification of non-existent values affects the average
!    plan cost, and hence if and when a generic plan is chosen.
    </para>
  
    <para>
     To examine the query plan <productname>PostgreSQL</productname> is using
!    for a prepared statement, use <xref linkend="sql-explain">, e.g.
!    <command>EXPLAIN EXECUTE</>.
     If a generic plan is in use, it will contain parameter symbols
     <literal>$<replaceable>n</></literal>, while a custom plan will have the
!    supplied parameter values substituted into it.
!    The row estimates in the generic plan reflect the selectivity
!    computed for the parameters.
    </para>
  
    <para>
