Documentation for the magic `<nixpkgs>`

Despite using it all the time, I realized I don’t actually know what <nixpkgs> means.

I assume it’s a language thing along the lines of “a name appearing in angle brackets corresponds to a nixpkgs channel, and should resolve to the path of that channel” - is that right? Is there official documentation somewhere that I’m missing?

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Ahh it’s to do with $NIX_PATH: Introduction