diff --git a/docs/requirements/Component-TemplateEngine.md b/docs/requirements/Component-TemplateEngine.md
index f212ef47..09d0c891 100644
--- a/docs/requirements/Component-TemplateEngine.md
+++ b/docs/requirements/Component-TemplateEngine.md
@@ -97,7 +97,7 @@ breadcrumb.
 
 Override and lock rules apply per entity type at the following granularity:
 
-- **Attributes**: Value and Description are overridable. Data Type and Data Source Reference are fixed by the defining level. Lock applies to the entire attribute (when locked, no fields can be overridden).
+- **Attributes**: Value and Description are overridable. Data Type is fixed by the defining level. `DataSourceReference` on a template attribute defines the **default** physical address for that attribute. Instances may override per attribute via `InstanceConnectionBinding.DataSourceReferenceOverride`; the override replaces the template default at flattening time. When the override is null (the default), the template value is used. Lock applies to the entire attribute (when locked, no fields can be overridden).
 - **Alarms**: Priority Level, Trigger Definition (thresholds/ranges/rates), Description, and On-Trigger Script reference are overridable. Name and Trigger Type (Value Match vs. Range vs. Rate of Change) are fixed. Lock applies to the entire alarm.
 - **Scripts**: C# source code, Trigger configuration, minimum time between runs, and parameter/return definitions are overridable. Name is fixed. Lock applies to the entire script.
 - **Composed module members**: A composing template or child template can override non-locked members inside a composed module using the canonical path-qualified name.
@@ -166,6 +166,8 @@ Each flattened configuration output includes a **revision hash** (computed from
 - Staleness detection: comparing the deployed revision to the current template-derived revision without a full diff.
 - Diff correlation: ensuring diffs are computed against a consistent baseline.
 
+The override flows into the flattened attribute's `DataSourceReference` and therefore participates in the revision hash — changes to an instance's binding overrides re-deploy as expected.
+
 ### On-Demand Validation
 
 The same validation logic is available to Design users in the Central UI without triggering a deployment. This allows template authors to check their work for errors during authoring.