diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5fc5a75..ec3a120 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Changed
 - OpenAPI schema is now sourced from the versioned `hyperfleet-api-spec` Go module instead of being downloaded from `hyperfleet-api` main branch
+- Documented single-instance deployment limitation — running multiple replicas with overlapping resource selectors causes duplicate events. Added recommended deployment configuration and scaling guidance
 
 ### Deprecated
 
diff --git a/charts/README.md b/charts/README.md
index 5a728dd..30ab868 100644
--- a/charts/README.md
+++ b/charts/README.md
@@ -26,7 +26,7 @@ helm install hyperfleet-sentinel oci://quay.io/redhat-services-prod/hyperfleet-t
 
 | Key | Type | Default | Description |
 |-----|------|---------|-------------|
-| replicaCount | int | `1` | Number of sentinel replicas |
+| replicaCount | int | `1` | Number of sentinel replicas. Setting >1 duplicates events; scale via separate Helm releases with non-overlapping resourceSelector values instead. See docs/multi-instance-deployment.md. |
 | image.registry | string | `"CHANGE_ME"` | Container image registry (no default — must be set) |
 | image.repository | string | `"CHANGE_ME"` | Container image repository (no default — must be set) |
 | image.pullPolicy | string | `"Always"` | Image pull policy |
diff --git a/charts/values.yaml b/charts/values.yaml
index 85f4a41..813c904 100644
--- a/charts/values.yaml
+++ b/charts/values.yaml
@@ -1,7 +1,9 @@
 # Default values for sentinel.
 # This is a YAML-formatted file.
 
-# -- Number of sentinel replicas
+# -- Number of sentinel replicas. Setting >1 duplicates events; scale via
+# separate Helm releases with non-overlapping resourceSelector values instead.
+# See docs/multi-instance-deployment.md.
 replicaCount: 1
 
 image:
diff --git a/docs/multi-instance-deployment.md b/docs/multi-instance-deployment.md
index 9568e9d..f864608 100644
--- a/docs/multi-instance-deployment.md
+++ b/docs/multi-instance-deployment.md
@@ -4,7 +4,7 @@
 
 Sentinel supports horizontal scaling through multiple dimensions: by resource type (separate instances for clusters vs nodepools) and by label-based resource filtering within the same resource type. Deploy multiple Sentinel instances with different `resource_selector` values to distribute the workload.
 
-> **Important**: There is no coordination between Sentinel instances. Operators must ensure all resources are covered by the combined selectors to avoid gaps.
+> **Important**: There is no coordination between Sentinel instances. Operators must ensure selectors are **non-overlapping** (to avoid duplicate events) and that all resources are covered by the combined selectors (to avoid gaps). See [Known Limitations](#known-limitations) for details.
 
 ## Using Helm for Multi-Instance Deployment
 
@@ -117,6 +117,48 @@ Scale to multiple instances as your cluster count grows or when you need regiona
 
 ---
 
+## Known Limitations
+
+### No Built-In Deduplication or Leader Election
+
+Sentinel has no inter-instance coordination. Running multiple replicas with the same or overlapping resource selector (`resource_selector` in Sentinel config YAML, `resourceSelector` in Helm values) produces proportionally more duplicate events on the broker. Each replica independently polls the API and publishes events for every matching resource, resulting in:
+
+- Increased load on the API, PostgreSQL, broker, and adapters — without benefit
+- Adapters processing the same cluster multiple times per poll cycle
+- No deduplication at the Sentinel or broker layer
+
+> **Important**: Do not increase `replicaCount` to scale Sentinel. Multiple replicas with the same selector will duplicate events. Scale by deploying separate Sentinel instances with **non-overlapping** `resource_selector` values instead.
+
+This is an architectural decision documented in ADR-0004 (Sentinel as a Stateless Polling Reconciliation Loop). Sentinel is intentionally stateless with at-least-once delivery semantics — adapters are expected to be idempotent.
+
+### Recommended Deployment Configuration
+
+Deploy **one Sentinel instance per distinct resource partition** (label selector subset). Scale horizontally by adding instances with non-overlapping selectors:
+
+```yaml
+# Instance A: watches region=us-east
+config:
+  resourceType: clusters
+  resourceSelector:
+    - label: region
+      value: us-east
+
+# Instance B: watches region=us-west (no overlap with Instance A)
+config:
+  resourceType: clusters
+  resourceSelector:
+    - label: region
+      value: us-west
+```
+
+Do **not** run multiple replicas of the same Sentinel configuration. If you need high availability for a single partition, rely on Kubernetes restart policies and `PodDisruptionBudget` (see below) rather than replica scaling.
+
+### Future: Automated Partitioning
+
+The current label-based partitioning model is a known MVP limitation. The architecture repo (sentinel.md, Technical Debt section) documents a planned remediation path: automated shard coverage validation or coordinated sharding with a registry. A future Epic will address both automatic partition assignment and gap detection (resources not matched by any Sentinel instance).
+
+---
+
 ## PodDisruptionBudget
 
 **What**: Ensures minimum Sentinel availability during cluster maintenance.
@@ -226,7 +268,7 @@ Memory: 64Mi + (5 × 32Mi) + 16Mi = 240Mi
                             └───────────────────┘
 ```
 
-**Important**: This is **NOT leader election**. Multiple Sentinels can overlap resource selectors if needed. Operators must ensure appropriate coverage.
+**Important**: This is **NOT leader election**. Multiple Sentinels with overlapping resource selectors will produce duplicate events. Ensure selectors are **non-overlapping** to avoid event duplication. See [Known Limitations](#known-limitations).
 
 #### Resource Selector Strategies
 
diff --git a/docs/sentinel-operator-guide.md b/docs/sentinel-operator-guide.md
index b30c6fa..5322fcd 100644
--- a/docs/sentinel-operator-guide.md
+++ b/docs/sentinel-operator-guide.md
@@ -227,8 +227,9 @@ graph TB
 
 1. **No Coordination**: Sentinel instances operate independently with no coordination
 2. **Coverage Responsibility**: Operators must ensure all resources are covered by selectors
-3. **Overlap Allowed**: Multiple instances can watch the same resource (events will be duplicated)
-4. **Gaps Dangerous**: Resources not matching any selector will never reconcile
+3. **Gaps Dangerous**: Resources not matching any selector will never reconcile
+
+> **Important**: Multiple instances watching the same resource **will** produce duplicate events. Always use non-overlapping `resource_selector` values across instances. Do not increase `replicaCount` to scale — deploy separate instances with distinct selectors instead. See the [Known Limitations](multi-instance-deployment.md#known-limitations) section for details.
 
 **Broker Topic Isolation:**