diff --git a/README.md b/README.md
index e7a89db..1232585 100644
--- a/README.md
+++ b/README.md
@@ -48,6 +48,39 @@ docker-compose run --rm --entrypoint ".venv/bin/python src/manage.py createsuper
 
 You can then access the admin dashboard at [http://localhost:8000/admin/](http://localhost:8000/admin/)
 
+## InfluxDB
+
+Flagsmith has a soft dependency on InfluxDB to store time-series data. You dont need to configure Influx to run the platform, but SDK traffic and flag analytics will not work without it being set up and configured correctly. Once your docker-compose is running:
+
+1. Create a user account in influxdb. You can visit http://localhost:8086/ and do this. Create an Initial Bucket with the name `flagsmith_api`
+2. Go into Data > Buckets and create a second bucket, `flagsmith_api_downsampled_15m`.
+3. Go into Data > Tokens and grab your access token.
+4. Edit the `docker-compose.yml` file and add the following `environment` variables in the api service to connect the api to InfluxDB:
+    * `INFLUXDB_TOKEN`: The token from the step above
+    * `INFLUXDB_URL`: `http://influxdb`
+    * `INFLUXDB_ORG`: The organisation ID - you can find it [here](https://docs.influxdata.com/influxdb/v2.0/organizations/view-orgs/)
+    * `INFLUXDB_BUCKET`: `flagsmith_api`
+5. Restart `docker-compose`
+6. Log into InfluxDB, create a new bucket called `flagsmith_api_downsampled_15m`
+7. Create a new task with the following query. This will downsample your per millisecond data down to 15 minute blocks for faster queries. Set it to run every 15 minutes.
+
+```
+option task = {name: "Downsample", every: 15m}
+
+data = from(bucket: "flagsmith_api")
+	|> range(start: -duration(v: int(v: task.every) * 2))
+	|> filter(fn: (r) =>
+		(r._measurement == "api_call"))
+
+data
+	|> aggregateWindow(fn: sum, every: 15m)
+	|> filter(fn: (r) =>
+		(exists r._value))
+	|> to(bucket: "flagsmith_api_downsampled_15m")
+```
+
+Once this task has run you will see data coming into the Organisation API Usage area.
+
 ## Architecture
 
 The docker-compose file runs the following containers:
diff --git a/docker-compose.yml b/docker-compose.yml
index 7ce56d1..a08622d 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,31 +1,46 @@
 version: "3"
 services:
-  db:
-    image: postgres:10.6-alpine
-    environment:
-      POSTGRES_PASSWORD: password
-      POSTGRES_DB: flagsmith
-    container_name: flagsmith_postgres
   api:
     image: flagsmith/flagsmith-api:latest
     environment:
       DJANGO_ALLOWED_HOSTS: "*" # Change this in production
       DATABASE_URL: postgresql://postgres:password@db:5432/flagsmith
+      INFLUXDB_URL: http://influxdb:8086
+      INFLUXDB_BUCKET: flagsmith_api
+      INFLUXDB_ORG: # Add your influx org id here - see readme.md
+      INFLUXDB_TOKEN: # Add your influx token here - see readme.md
+      
     ports:
       - "8000:8000"
     depends_on:
       - db
     links:
       - db:db
+      - influxdb:influxdb
     container_name: flagsmith_api
+
   frontend:
     image: flagsmith/flagsmith-frontend:latest
     environment:
       # You might need to change the 2 host names below depending on your docker dns setup
       API_URL: http://localhost:8000/api/v1/ 
-      ASSET_URL: http://locahost:8080/
+      ASSET_URL: http://localhost:8080/
     ports:
       - "8080:8080"
     links:
       - api:api
     container_name: flagsmith_frontend
+
+  db:
+    image: postgres:10.6-alpine
+    environment:
+      POSTGRES_PASSWORD: password
+      POSTGRES_DB: flagsmith
+    container_name: flagsmith_postgres
+    
+  influxdb:
+    image: quay.io/influxdb/influxdb:v2.0.3
+    container_name: flagsmith_influxdb
+    ports:
+      - "8086:8086"
+    
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