diff --git a/README.md b/README.md
index 839e91c..9234589 100644
--- a/README.md
+++ b/README.md
@@ -274,8 +274,7 @@ proxy to allow using a wildcard domain.
 ### Setup
 
 - Set a DNS record for `*.haze.exmaple.com` and `haze.example.com` pointing to
-  your development machine. Pointing it to `127.0.0.1` will also work, but comes
-  with limitations like federation not being supported.
+  your development machine.
 - Set the `proxy` configuration with your domain and desired listen endpoint.
 - Set up a service to run `haze proxy` in the background as your own user. A
   systemd user service is recommended (see [haze.service](./haze.service) for an