diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index d7e0e90066..05bcfa9ed2 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -1793,14 +1793,22 @@ class ConstructedInventorySerializer(InventorySerializer):
         allow_blank=True,
         help_text=_('The limit to restrict the returned hosts for the related auto-created inventory source, special to constructed inventory.'),
     )
+    verbosity = ConstructedIntegerField(
+        required=False,
+        allow_null=True,
+        min_value=0,
+        max_value=2,
+        default=None,
+        help_text=_('The verbosity level for the related auto-created inventory source, special to constructed inventory'),
+    )
 
     class Meta:
         model = Inventory
-        fields = ('*', '-host_filter', 'source_vars', 'update_cache_timeout', 'limit')
+        fields = ('*', '-host_filter', 'source_vars', 'update_cache_timeout', 'limit', 'verbosity')
 
     def pop_inv_src_data(self, data):
         inv_src_data = {}
-        for field in ('source_vars', 'update_cache_timeout', 'limit'):
+        for field in ('source_vars', 'update_cache_timeout', 'limit', 'verbosity'):
             if field in data:
                 # values always need to be removed, as they are not valid for Inventory model
                 value = data.pop(field)
diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index b958010f4c..964d64f925 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -445,7 +445,7 @@ class Inventory(CommonModelNameNotUnique, ResourceMixin, RelatedJobsMixin):
         """
         if self.kind == 'constructed':
             if not self.inventory_sources.exists():
-                self.inventory_sources.create(source='constructed', name=f'Auto-created source for: {self.name}'[:512], overwrite=True)
+                self.inventory_sources.create(source='constructed', name=f'Auto-created source for: {self.name}'[:512], overwrite=True, update_on_launch=True)
 
     def save(self, *args, **kwargs):
         self._update_host_smart_inventory_memeberships()
diff --git a/docs/inventory/inventory_refresh.md b/docs/deprecated/inventory_refresh.md
similarity index 100%
rename from docs/inventory/inventory_refresh.md
rename to docs/deprecated/inventory_refresh.md
diff --git a/docs/inventory/constructed_inventory.md b/docs/inventory/constructed_inventory.md
new file mode 100644
index 0000000000..8516723fe3
--- /dev/null
+++ b/docs/inventory/constructed_inventory.md
@@ -0,0 +1,86 @@
+### Constructed inventory in AWX
+
+Constructed inventory is a separate "kind" of inventory, along-side of
+normal (manual) inventories and "smart" inventories.
+The functionality overlaps with smart inventory, and it is intended that
+smart inventory is sunsetted and will be eventually removed.
+
+#### Demo Problem
+
+This is branched from original demo at:
+
+https://github.com/AlanCoding/Ansible-inventory-file-examples/tree/master/issues/AWX371
+
+Consider that we have 2 original "source" inventories named "East" and "West".
+
+```
+# East inventory original contents
+host1 account_alias=product_dev
+host2 account_alias=product_dev state=shutdown
+host3 account_alias=sustaining
+```
+
+```
+# West inventory original contents
+host4 account_alias=product_dev
+host6 account_alias=product_dev state=shutdown
+host5 account_alias=sustaining state=shutdown
+```
+
+The user's intent is to operate on _shutdown_ hosts in the _product_dev_ group.
+So these are two AND conditions that we want to filter on.
+
+To accomplish this, the user will create a constructed inventory with
+the following properties.
+
+`source_vars` =
+
+```yaml
+plugin: constructed
+strict: true
+use_vars_plugins: true  # https://github.com/ansible/ansible/issues/75365
+groups:
+  shutdown: resolved_state == "shutdown"
+  shutdown_in_product_dev: resolved_state == "shutdown" and account_alias == "product_dev"
+compose:
+  resolved_state: state | default("running")
+```
+
+`limit` = "shutdown_in_product_dev"
+
+Then when running a job template against the constructed inventory, it should
+act on host2 and host6, because those are the two hosts that fit the criteria.
+
+#### Mechanic
+
+The constructed inventory contents will be materialized by an inventory update
+which runs via `ansible-inventory`.
+This is always configured to update-on-launch before a job,
+but the user can still select a cache timeout value in case this takes too long.
+
+When creating a constructed inventory, the API enforces that it always has 1
+inventory source associated with it.
+All inventory updates have an associated inventory source, and the fields
+needed for constructed inventory (`source_vars` and `limit`) are fields
+on the inventory source model normally.
+
+#### Capabilities
+
+In addition to filtering on hostvars, users will be able to filter based on
+facts, which are prepared before the update in the same way as for jobs.
+
+For filtering on related objects in the database, users will need to use "meta"
+vars that are automatically prepared by the server.
+These have names such as:
+ - `awx_inventory_name`
+ - `awx_inventory_id`
+
+#### Best Practices
+
+It is very important to set the `strict` parameter to `True` so that users
+can debug problems with their templates, because these can get complicated.
+If the template fails to render, users will get an error in the
+associated inventory update for that constructed inventory.
+
+When encountering errors, it may be prudent to increase `verbosity` to get
+more details.