A new system for documentation processing in VLSI design environments is presented. The system integrates hypermedia and some CAD framework services to provide a radically new interface to CAD tools, environment and designs. This combination of technologies enables the construction of computer-based documents that are easier to create, maintain and understand. Hypermedia offers the possibility of integrating new media in design documentation and non-linear views of documents. The capability of invoking the design tools from the documentation processing system enables the re-use and direct manipulation of the design objects for the purpose of documentation. This paper describes the conceptual model for a documentation system embodying these ideas and a prototype implementation.