diff --git a/docker/.env.example b/docker/.env.example
index b66761b81ca2f..31fd8c75167b6 100644
--- a/docker/.env.example
+++ b/docker/.env.example
@@ -128,3 +128,17 @@ DOCKER_SOCKET_LOCATION=/var/run/docker.sock
 # Google Cloud Project details
 GOOGLE_PROJECT_ID=GOOGLE_PROJECT_ID
 GOOGLE_PROJECT_NUMBER=GOOGLE_PROJECT_NUMBER
+
+############
+# Storage - Configuration for the storage
+############
+
+STORAGE_TENANT_ID=stub
+GLOBAL_S3_BUCKET=stub
+REGION=stub
+S3_PROTOCOL_ACCESS_KEY_ID=625729a08b95bf1b7ff351a663f3a23c
+S3_PROTOCOL_ACCESS_KEY_SECRET=850181e4652dd023b7a98c58ae0d2d34bd487ee0cc3254aed6eda37307425907
+
+# Used in docker-compose.s3.yml for minio
+MINIO_ROOT_USER=supa-storage
+MINIO_ROOT_PASSWORD=secret1234
\ No newline at end of file
diff --git a/docker/docker-compose.s3.yml b/docker/docker-compose.s3.yml
index 043691a607b29..b7f8a2c70beff 100644
--- a/docker/docker-compose.s3.yml
+++ b/docker/docker-compose.s3.yml
@@ -6,8 +6,8 @@ services:
       - '9000:9000'
       - '9001:9001'
     environment:
-      MINIO_ROOT_USER: supa-storage
-      MINIO_ROOT_PASSWORD: secret1234
+      MINIO_ROOT_USER: ${MINIO_ROOT_USER}
+      MINIO_ROOT_PASSWORD: ${MINIO_ROOT_PASSWORD}
     command: server --console-address ":9001" /data
     healthcheck:
       test: [ "CMD", "curl", "-f", "http://minio:9000/minio/health/live" ]
@@ -23,15 +23,14 @@ services:
       minio:
         condition: service_healthy
     entrypoint: >
-      /bin/sh -c "
-      /usr/bin/mc alias set supa-minio http://minio:9000 supa-storage secret1234;
-      /usr/bin/mc mb supa-minio/stub;
-      exit 0;
+      /bin/sh -ec "
+      mc alias set supa-minio http://minio:9000 ${MINIO_ROOT_USER} ${MINIO_ROOT_PASSWORD} &&
+      mc mb --ignore-existing supa-minio/${GLOBAL_S3_BUCKET}
       "
 
   storage:
     container_name: supabase-storage
-    image: supabase/storage-api:v1.11.13
+    image: supabase/storage-api:v1.37.1
     depends_on:
       db:
         # Disable this if you are using an external Postgres database
@@ -40,8 +39,8 @@ services:
         condition: service_started
       imgproxy:
         condition: service_started
-      minio:
-        condition: service_healthy
+      minio-createbucket:
+        condition: service_completed_successfully
     healthcheck:
       test:
         [
@@ -50,7 +49,7 @@ services:
           "--no-verbose",
           "--tries=1",
           "--spider",
-          "http://localhost:5000/status"
+          "http://storage:5000/status"
         ]
       timeout: 5s
       interval: 5s
@@ -62,21 +61,24 @@ services:
       POSTGREST_URL: http://rest:3000
       PGRST_JWT_SECRET: ${JWT_SECRET}
       DATABASE_URL: postgres://supabase_storage_admin:${POSTGRES_PASSWORD}@${POSTGRES_HOST}:${POSTGRES_PORT}/${POSTGRES_DB}
+      REQUEST_ALLOW_X_FORWARDED_PATH: "true"
       FILE_SIZE_LIMIT: 52428800
       STORAGE_BACKEND: s3
-      GLOBAL_S3_BUCKET: stub
+      GLOBAL_S3_BUCKET: ${GLOBAL_S3_BUCKET}
       GLOBAL_S3_ENDPOINT: http://minio:9000
       GLOBAL_S3_PROTOCOL: http
       GLOBAL_S3_FORCE_PATH_STYLE: true
-      AWS_ACCESS_KEY_ID: supa-storage
-      AWS_SECRET_ACCESS_KEY: secret1234
+      AWS_ACCESS_KEY_ID: ${MINIO_ROOT_USER}
+      AWS_SECRET_ACCESS_KEY: ${MINIO_ROOT_PASSWORD}
       AWS_DEFAULT_REGION: stub
       FILE_STORAGE_BACKEND_PATH: /var/lib/storage
-      TENANT_ID: stub
+      TENANT_ID: ${STORAGE_TENANT_ID}
       # TODO: https://github.com/supabase/storage-api/issues/55
-      REGION: stub
+      REGION: ${REGION}
       ENABLE_IMAGE_TRANSFORMATION: "true"
       IMGPROXY_URL: http://imgproxy:5001
+      S3_PROTOCOL_ACCESS_KEY_ID: ${S3_PROTOCOL_ACCESS_KEY_ID}
+      S3_PROTOCOL_ACCESS_KEY_SECRET: ${S3_PROTOCOL_ACCESS_KEY_SECRET}
     volumes:
       - ./volumes/storage:/var/lib/storage:z
 
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index 98358df70a6e7..6fd37691c2d07 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -277,12 +277,14 @@ services:
       FILE_SIZE_LIMIT: 52428800
       STORAGE_BACKEND: file
       FILE_STORAGE_BACKEND_PATH: /var/lib/storage
-      TENANT_ID: stub
+      TENANT_ID: ${STORAGE_TENANT_ID}
       # TODO: https://github.com/supabase/storage-api/issues/55
-      REGION: stub
-      GLOBAL_S3_BUCKET: stub
+      REGION: ${REGION}
+      GLOBAL_S3_BUCKET: ${GLOBAL_S3_BUCKET}
       ENABLE_IMAGE_TRANSFORMATION: "true"
       IMGPROXY_URL: http://imgproxy:5001
+      S3_PROTOCOL_ACCESS_KEY_ID: ${S3_PROTOCOL_ACCESS_KEY_ID}
+      S3_PROTOCOL_ACCESS_KEY_SECRET: ${S3_PROTOCOL_ACCESS_KEY_SECRET}
 
   imgproxy:
     container_name: supabase-imgproxy