diff --git a/README.md b/README.md
index a4d0118..8bb06ee 100644
--- a/README.md
+++ b/README.md
@@ -15,8 +15,6 @@ but keep in mind that for production usage it might need modifications.
     * https://www.loraserver.io/lora-app-server/install/config/
     * https://www.loraserver.io/lora-geo-server/install/config/
 * `configuration/postgresql/initdb/`: directory containing PostgreSQL initialization scripts
-* `data/postgresql`: directory containing the PostgreSQL data (auto-created)
-* `data/redis`: directory containing the Redis data (auto-created)
 
 ## Configuration
 
@@ -25,6 +23,11 @@ The LoRa Server components are pre-configured to work with the provided
 to the `configuration/loraserver/loraserver.toml` configuration file to
 configure a different band.
 
+# Data persistence
+
+PostgreSQL and Redis data is persisted in Docker volumes, see the `docker-compose.yml`
+`volumes` definition.
+
 ## Requirements
 
 Before using this `docker-compose.yml` file, make sure you have [Docker](https://www.docker.com/community-edition)
diff --git a/docker-compose.yml b/docker-compose.yml
index 450aba7..d73be9b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,4 +1,4 @@
-version: "2"
+version: "3"
 
 services:
   loraserver:
@@ -29,14 +29,19 @@ services:
     image: postgres:9.6-alpine
     volumes:
       - ./configuration/postgresql/initdb:/docker-entrypoint-initdb.d
-      - ./data/postgresql:/var/lib/postgresql/data
+      - postgresqldata:/var/lib/postgresql/data
 
   redis:
     image: redis:4-alpine
     volumes:
-      - ./data/redis:/data
+      - redisdata:/data
 
   mosquitto:
     image: eclipse-mosquitto
     ports:
       - 1883:1883
+
+volumes:
+  postgresqldata:
+  redisdata:
+