diff --git a/modules/power-bi-dedicated/capacity/MOVED-TO-AVM.md b/modules/power-bi-dedicated/capacity/MOVED-TO-AVM.md
new file mode 100644
index 0000000000..cec0941d12
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+++ b/modules/power-bi-dedicated/capacity/MOVED-TO-AVM.md
@@ -0,0 +1 @@
+This module has already been migrated to [AVM](https://github.com/Azure/bicep-registry-modules/tree/main/avm/res). Only the AVM version is expected to receive updates / new features. Please do not work on improving this module in [CARML](https://aka.ms/carml).
diff --git a/modules/power-bi-dedicated/capacity/README.md b/modules/power-bi-dedicated/capacity/README.md
index 01010cbef4..4129db5ce7 100644
--- a/modules/power-bi-dedicated/capacity/README.md
+++ b/modules/power-bi-dedicated/capacity/README.md
@@ -1,5 +1,7 @@
 # Power BI Dedicated Capacities `[Microsoft.PowerBIDedicated/capacities]`
 
+> This module has already been migrated to [AVM](https://github.com/Azure/bicep-registry-modules/tree/main/avm/res). Only the AVM version is expected to receive updates / new features. Please do not work on improving this module in [CARML](https://aka.ms/carml).
+
 This module deploys a Power BI Dedicated Capacity.
 
 ## Navigation