--- a/spec/latest/json-ld-api/index.html	Sun Dec 25 22:40:35 2011 -0800
+++ b/spec/latest/json-ld-api/index.html	Sun Dec 25 22:46:49 2011 -0800
@@ -690,7 +690,7 @@
     <dt><tdef>initial context</tdef></dt>
     <dd>
       a context that is specified to the algorithm before processing begins. The contents of the
-      initial context is defined in <a href="#appendix-a">Appendix A</a>.
+      initial context is defined in <a href="#appendix-b">Appendix B</a>.
     </dd>
     <dt><tdef>active subject</tdef></dt>
     <dd>
@@ -2787,5 +2787,21 @@
 <p class="issue">Dave is an editor, and probably shouldn't also be in acknowledgments.</p>
 </section>
 
+<section class="appendix" id="appendix-b">
+  <h1>Initial Context</h1>
+  <p>The <tref>initial context</tref> is defined with the following default entries:</p>
+<pre class="example" data-transform="updateExample">
+<!--
+{
+  "@context": {
+    "http://www.w3.org/1999/02/22-rdf-syntax-ns#type": { "@type": "@id"}
+  }
+}
+-->
+</pre>
+  <p>Processors MUST act as if the initial context is defined in the outer-most level when processing
+    JSON-LD documents.</p>
+  <p class="issue">Should we define other default prefixes?</p>
+</section>
 </body>
 </html>