diff --git a/server/filestore.go b/server/filestore.go
index 33a230dc..3e943381 100644
--- a/server/filestore.go
+++ b/server/filestore.go
@@ -107,6 +107,35 @@ func (alg StoreCompression) String() string {
 	}
 }
 
+func (alg StoreCompression) MarshalJSON() ([]byte, error) {
+	var str string
+	switch alg {
+	case S2Compression:
+		str = "s2"
+	case NoCompression:
+		str = "none"
+	default:
+		return nil, fmt.Errorf("unknown compression algorithm")
+	}
+	return json.Marshal(str)
+}
+
+func (alg *StoreCompression) UnmarshalJSON(b []byte) error {
+	var str string
+	if err := json.Unmarshal(b, &str); err != nil {
+		return err
+	}
+	switch str {
+	case "s2":
+		*alg = S2Compression
+	case "none":
+		*alg = NoCompression
+	default:
+		return fmt.Errorf("unknown compression algorithm")
+	}
+	return nil
+}
+
 // File ConsumerInfo is used for creating consumer stores.
 type FileConsumerInfo struct {
 	Created time.Time
diff --git a/server/stream.go b/server/stream.go
index e229188e..e190508e 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -38,25 +38,26 @@ import (
 // StreamConfig will determine the name, subjects and retention policy
 // for a given stream. If subjects is empty the name will be used.
 type StreamConfig struct {
-	Name         string          `json:"name"`
-	Description  string          `json:"description,omitempty"`
-	Subjects     []string        `json:"subjects,omitempty"`
-	Retention    RetentionPolicy `json:"retention"`
-	MaxConsumers int             `json:"max_consumers"`
-	MaxMsgs      int64           `json:"max_msgs"`
-	MaxBytes     int64           `json:"max_bytes"`
-	MaxAge       time.Duration   `json:"max_age"`
-	MaxMsgsPer   int64           `json:"max_msgs_per_subject"`
-	MaxMsgSize   int32           `json:"max_msg_size,omitempty"`
-	Discard      DiscardPolicy   `json:"discard"`
-	Storage      StorageType     `json:"storage"`
-	Replicas     int             `json:"num_replicas"`
-	NoAck        bool            `json:"no_ack,omitempty"`
-	Template     string          `json:"template_owner,omitempty"`
-	Duplicates   time.Duration   `json:"duplicate_window,omitempty"`
-	Placement    *Placement      `json:"placement,omitempty"`
-	Mirror       *StreamSource   `json:"mirror,omitempty"`
-	Sources      []*StreamSource `json:"sources,omitempty"`
+	Name         string           `json:"name"`
+	Description  string           `json:"description,omitempty"`
+	Subjects     []string         `json:"subjects,omitempty"`
+	Retention    RetentionPolicy  `json:"retention"`
+	MaxConsumers int              `json:"max_consumers"`
+	MaxMsgs      int64            `json:"max_msgs"`
+	MaxBytes     int64            `json:"max_bytes"`
+	MaxAge       time.Duration    `json:"max_age"`
+	MaxMsgsPer   int64            `json:"max_msgs_per_subject"`
+	MaxMsgSize   int32            `json:"max_msg_size,omitempty"`
+	Discard      DiscardPolicy    `json:"discard"`
+	Storage      StorageType      `json:"storage"`
+	Replicas     int              `json:"num_replicas"`
+	NoAck        bool             `json:"no_ack,omitempty"`
+	Template     string           `json:"template_owner,omitempty"`
+	Duplicates   time.Duration    `json:"duplicate_window,omitempty"`
+	Placement    *Placement       `json:"placement,omitempty"`
+	Mirror       *StreamSource    `json:"mirror,omitempty"`
+	Sources      []*StreamSource  `json:"sources,omitempty"`
+	Compression  StoreCompression `json:"compression"`
 
 	// Allow applying a subject transform to incoming messages before doing anything else
 	SubjectTransform *SubjectTransformConfig `json:"subject_transform,omitempty"`
@@ -549,6 +550,7 @@ func (a *Account) addStreamWithAssignment(config *StreamConfig, fsConfig *FileSt
 	fsCfg.StoreDir = storeDir
 	fsCfg.AsyncFlush = false
 	fsCfg.SyncInterval = 2 * time.Minute
+	fsCfg.Compression = config.Compression
 
 	if err := mset.setupStore(fsCfg); err != nil {
 		mset.stop(true, false)