+## What is actually backed up and how do I restore from that backup?
+Bitbucket Backup creates local repositories and pulls from the remote Bitbucket repositories into the local ones.
+Those local repositories are **bare repositories**, i.e. they don't contain a working directory.
+When you look inside the repository directories, you'll see this:
+- **Mercurial**: A single folder named `.hg`
+- **Git**: Some folders (`objects`, `refs`, ...) and some files
+**Your complete history and your source code are in there - you just don't see the actual files.**
+The repository is backed up without a working directory, because it's not necessary. All the data already exists inside the repository, a second copy of everything in the working directory would just be a waste of space.
+The easiest way to restore your working directory is to clone the bare repository that Bitbucket Backup created *(called `bare-repo` in the examples)*, which will create a clone **with** a working directory *(called `working-repo` in the examples)*:
+ hg clone bare-repo working-repo
+It's also possible to create the working directory directly inside the bare repository:
+ git clone bare-repo.git working-repo
+*(Note: It seems the Git tools do not like cloning from a bare repository that does not end in the `.git` extension, so Bitbucket Backup automatically appends it to all Git repositories)*
+For more background information *(and the discussion that led to the creation of this section)* see [this issue](https://bitbucket.org/christianspecht/bitbucket-backup/issue/22).