diff --git a/README.md b/README.md
index c10053bd85..a2bc36428a 100644
--- a/README.md
+++ b/README.md
@@ -7,6 +7,12 @@ working with Zcash.
 
 These libraries are currently under development and have not been fully-reviewed.
 
+## Cross-Workspace Dependency Cycle
+
+There is a complication in crate dependencies documented in
+[`components/zcash_note_encryption/README.md`](./components/zcash_note_encryption/README.md)
+and [issue #768](https://github.com/zcash/librustzcash/issues/768).
+
 ## License
 
 All code in this workspace is licensed under either of
diff --git a/components/zcash_note_encryption/README.md b/components/zcash_note_encryption/README.md
index 612b7a64fb..20a0a4d879 100644
--- a/components/zcash_note_encryption/README.md
+++ b/components/zcash_note_encryption/README.md
@@ -12,6 +12,15 @@ users with their own existing types can similarly implement the trait themselves
 [`zcash_primitives`]: https://crates.io/crates/zcash_primitives
 [`orchard`]: https://crates.io/crates/orchard
 
+## Cross-Workspace Dependency Cycle
+
+There is a cross-workspace cyclic dependency: `zcash_client_backend` (local)
+depends on [`orchard`](https://github.com/zcash/orchard) which depends on this crate
+`zcash_note_encryption`. For this reason `zcash_client_backend` does not depend on the local
+`zcash_note_encryption` crate, but rather the published crate release.
+
+This issue is tracked in [#768](https://github.com/zcash/librustzcash/issues/768).
+
 ## License
 
 Licensed under either of
diff --git a/zcash_client_backend/Cargo.toml b/zcash_client_backend/Cargo.toml
index bcd0038e33..d6650ffce3 100644
--- a/zcash_client_backend/Cargo.toml
+++ b/zcash_client_backend/Cargo.toml
@@ -23,6 +23,7 @@ development = ["zcash_proofs"]
 incrementalmerkletree = { version = "0.4", features = ["legacy-api"] }
 zcash_address = { version = "0.3", path = "../components/zcash_address" }
 zcash_encoding = { version = "0.2", path = "../components/zcash_encoding" }
+# Note: this is not the local workspace crate! See `components/zcash_note_encryption/README.md` for rationale:
 zcash_note_encryption = "0.4"
 zcash_primitives = { version = "0.12", path = "../zcash_primitives", default-features = false }
 
diff --git a/zcash_client_sqlite/Cargo.toml b/zcash_client_sqlite/Cargo.toml
index c58dba2a7d..12f5deb49d 100644
--- a/zcash_client_sqlite/Cargo.toml
+++ b/zcash_client_sqlite/Cargo.toml
@@ -51,6 +51,7 @@ proptest = "1.0.0"
 rand_core = "0.6"
 regex = "1.4"
 tempfile = "3.5.0"
+# Note: this is not the local workspace crate! See `components/zcash_note_encryption/README.md` for rationale:
 zcash_note_encryption = "0.4"
 zcash_proofs = { version = "0.12", path = "../zcash_proofs" }
 zcash_primitives = { version = "0.12", path = "../zcash_primitives", features = ["test-dependencies"] }