diff --git a/.env.sample b/.env.sample
index 79335e9..7783f35 100644
--- a/.env.sample
+++ b/.env.sample
@@ -29,6 +29,9 @@ DOMAIN=monitoring.example.com
 # Loki Server
 #
 # COMPOSE_FILE="$COMPOSE_FILE:compose.loki.yml"
+#
+# Set to 0 to disable retention
+# LOKI_RETENTION_PERIOD=744h
 # LOKI_STORAGE_FILESYSTEM=1
 #
 ## S3 Storage
diff --git a/compose.loki.yml b/compose.loki.yml
index 68685f9..f5ec027 100644
--- a/compose.loki.yml
+++ b/compose.loki.yml
@@ -2,7 +2,7 @@ version: '3.8'
 
 services:
   loki:
-    image: grafana/loki:2.0.0
+    image: grafana/loki:2.8.2
     # entrypoint: 'tail -f /dev/null'
     command: -config.file=/etc/loki/local-config.yaml
     networks:
@@ -19,6 +19,7 @@ services:
       - LOKI_AWS_ENDPOINT
       - LOKI_AWS_REGION
       - LOKI_BUCKET_NAMES
+      - LOKI_RETENTION_PERIOD
       - STACK_NAME
       - LOKI_STORAGE_FILESYSTEM
       - LOKI_STORAGE_S3
diff --git a/loki.yml.tmpl b/loki.yml.tmpl
index 679dabe..44598b2 100644
--- a/loki.yml.tmpl
+++ b/loki.yml.tmpl
@@ -34,7 +34,8 @@ ingester:
   chunk_target_size: 1048576  # Loki will attempt to build chunks up to 1.5MB, flushing first if chunk_idle_period or max_chunk_age is reached first
   chunk_retain_period: 30s    # Must be greater than index read cache TTL if using an index cache (Default index read cache TTL is 5m)
   max_transfer_retries: 0     # Chunk transfers disabled
-
+  wal:
+    dir: "/tmp/wal"
 
 memberlist:
   abort_if_cluster_join_fails: false
@@ -102,11 +103,16 @@ storage_config:
 compactor:
   working_directory: /loki/boltdb-shipper-compactor
   shared_store: filesystem
+  compaction_interval: 10m
+  retention_enabled: true
+  retention_delete_delay: 2h
+  retention_delete_worker_count: 150
 
 limits_config:
   enforce_metric_name: false
   reject_old_samples: true
   reject_old_samples_max_age: 168h
+  retention_period: {{ env "LOKI_RETENTION_PERIOD" }}
 
 chunk_store_config:
   max_look_back_period: 0s