diff --git a/production/README.md b/production/README.md
index bf2d660b0eb0..410236ef25ec 100644
--- a/production/README.md
+++ b/production/README.md
@@ -41,6 +41,8 @@ Until this is fixed we recommend [building and running from source](#build-and-r
 
 For instructions on how to query Loki, see [our usage docs](../docs/logql.md).
 
+To deploy a cluster of loki locally, please refer to this [doc](./docker/)
+
 ## Using Helm to deploy on Kubernetes
 
 There is a [Helm chart](helm) to deploy Loki and Promtail to Kubernetes.
diff --git a/production/docker/README.md b/production/docker/README.md
new file mode 100644
index 000000000000..7d5fecf38274
--- /dev/null
+++ b/production/docker/README.md
@@ -0,0 +1,37 @@
+# Loki cluster using docker-compose
+
+To deploy a cluster of loki nodes on a local machine (as shown below), you could use the `docker-compose-ha-member.yaml` file.
+
+<img src="./docker-compose-ha-diagram.png" width="850">
+
+Some features of the deployment:
+
+- Backend: 3 Loki servers enabled with distributor, ingester, querier module
+- Together they form a cluster ring based on memberlist mechanism (if using consul/etcd, modules can be separate for further separate read/write workloads)
+- Index data are stored and replicated through botldb-shipper
+- Replication_factor=2: the receiving distributor sends log data to 2 ingesters based on consistent hashing
+- Chunk storage is a shared directory mounted from the same host directory (to simulate S3 or gcs)
+- Query are performed through the two query frontend servers
+- An nginx gateway to route the write and read workloads from clients (Grafana, promtail)
+
+1. Ensure you have the most up-to-date Docker container images:
+
+   ```bash
+   docker-compose pull
+   ```
+
+1. Run the stack on your local Docker:
+
+   ```bash
+   docker-compose -f ./docker-compose-ha-memberlist.yaml up
+   ```
+
+1. When adding data source in the grafana dashboar, using `http://loki-gateway:3100` for the URL field.
+
+1. To clean up
+
+   ```bash
+   docker-compose -f ./docker-compose-ha-memberlist.yaml down
+   ```
+
+   Remove the chunk data under `./chunks/`.
diff --git a/production/docker/chunks/.gitignore b/production/docker/chunks/.gitignore
new file mode 100755
index 000000000000..f59ec20aabf5
--- /dev/null
+++ b/production/docker/chunks/.gitignore
@@ -0,0 +1 @@
+*
\ No newline at end of file
diff --git a/production/docker/config/loki-docker-memberlist-boltdb-shipper.yaml b/production/docker/config/loki-docker-memberlist-boltdb-shipper.yaml
new file mode 100644
index 000000000000..a68cb6f53e03
--- /dev/null
+++ b/production/docker/config/loki-docker-memberlist-boltdb-shipper.yaml
@@ -0,0 +1,108 @@
+auth_enabled: false
+
+http_prefix:
+
+server:
+  http_listen_address: 0.0.0.0
+  grpc_listen_address: 0.0.0.0
+  http_listen_port: 3100
+  grpc_listen_port: 9095
+  log_level: debug
+
+memberlist:
+  join_members: ["loki-1", "loki_2", "loki_3"]
+  dead_node_reclaim_time: 30s
+  gossip_to_dead_nodes_time: 15s
+  left_ingesters_timeout: 30s
+  bind_addr: ['0.0.0.0']
+  bind_port: 7946
+
+ingester:
+  lifecycler:
+    join_after: 60s
+    observe_period: 5s
+    ring:
+      replication_factor: 2
+      kvstore:
+        store: memberlist
+    final_sleep: 0s
+  chunk_idle_period: 1h
+  max_chunk_age: 1h
+  chunk_retain_period: 30s
+  chunk_encoding: snappy
+  chunk_target_size: 0
+  chunk_block_size: 262144
+  # chunk_target_size: 1.572864e+06
+
+# Only needed for global rate strategy
+# distributor:
+#  ring:
+#    kvstore:
+#      store: memberlist
+
+schema_config:
+  configs:
+  - from: 2020-08-01
+    store: boltdb-shipper
+    object_store: filesystem
+    schema: v11
+    index:
+      prefix: index_
+      period: 24h
+
+storage_config:
+  boltdb_shipper:
+    # shared_store: s3
+    shared_store: filesystem
+    active_index_directory: /tmp/loki/index
+    cache_location: /tmp/loki/boltdb-cache
+
+  #aws:
+  #  s3: s3://us-east-1/mybucket
+  #  sse_encryption: true
+  #  insecure: false
+  #  s3forcepathstyle: true
+  filesystem:
+    directory: /loki/chunks
+
+
+limits_config:
+  max_cache_freshness_per_query: '10m'
+  enforce_metric_name: false
+  reject_old_samples: true
+  reject_old_samples_max_age: 30m
+  ingestion_rate_mb: 10
+  ingestion_burst_size_mb: 20
+
+chunk_store_config:
+  max_look_back_period: 336h
+
+table_manager:
+  retention_deletes_enabled: true
+  retention_period: 336h
+
+query_range:
+  # make queries more cache-able by aligning them with their step intervals
+  align_queries_with_step: true
+  max_retries: 5
+  # parallelize queries in 15min intervals
+  split_queries_by_interval: 15m
+  parallelise_shardable_queries: true
+  cache_results: true
+
+  results_cache:
+    cache:
+      # We're going to use the in-process "FIFO" cache
+      enable_fifocache: true
+      fifocache:
+        size: 1024
+        validity: 24h
+
+frontend:
+  log_queries_longer_than: 5s
+  # downstream_url: http://loki-1:3100
+  downstream_url: http://loki-gateway:3100
+  compress_responses: true
+
+querier:
+  query_ingesters_within: 2h
diff --git a/production/docker/config/nginx-loki-gateway.conf b/production/docker/config/nginx-loki-gateway.conf
new file mode 100644
index 000000000000..5df6822a20cc
--- /dev/null
+++ b/production/docker/config/nginx-loki-gateway.conf
@@ -0,0 +1,67 @@
+error_log  /dev/stderr;
+pid        /tmp/nginx.pid;
+worker_rlimit_nofile 8192;
+
+events {
+    worker_connections  4096;  ## Default: 1024
+}
+
+http {
+
+  default_type application/octet-stream;
+  log_format   main '$remote_addr - $remote_user [$time_local]  $status '
+    '"$request" $body_bytes_sent "$http_referer" '
+    '"$http_user_agent" "$http_x_forwarded_for"';
+  access_log   /dev/stderr  main;
+  sendfile     on;
+  tcp_nopush   on;
+
+  upstream distributor {
+    server loki-1:3100;
+    server loki-2:3100;
+    server loki-3:3100;
+  }
+
+  upstream querier {
+    server loki-1:3100;
+    server loki-2:3100;
+    server loki-3:3100;
+  }
+
+  upstream query-frontend {
+    server loki-frontend:3100;
+  }
+
+  server {
+    listen 80;
+    proxy_set_header     X-Scope-OrgID docker-ha;
+
+    location = /loki/api/v1/push {
+        proxy_pass       http://distributor$request_uri;
+    }
+    
+    location = /ring {
+        proxy_pass       http://distributor$request_uri;
+    }
+
+    location = /loki/api/v1/tail {
+        proxy_pass       http://querier$request_uri;
+        proxy_set_header Upgrade $http_upgrade;
+        proxy_set_header Connection "upgrade";
+    }
+
+    location ~ /loki/api/.* {
+        proxy_pass       http://query-frontend$request_uri;
+    }
+  }
+
+  server {
+    listen 3100;
+    proxy_set_header     X-Scope-OrgID docker-ha;
+
+    location ~ /loki/api/.* {
+        proxy_pass       http://querier$request_uri;
+    }
+    
+  }
+}
diff --git a/production/docker/config/promtail-gateway.yaml b/production/docker/config/promtail-gateway.yaml
new file mode 100644
index 000000000000..9ce3d2652fc5
--- /dev/null
+++ b/production/docker/config/promtail-gateway.yaml
@@ -0,0 +1,19 @@
+server:
+    http_listen_port: 9080
+    grpc_listen_port: 0
+    log_level: "debug"
+  
+positions:
+    filename: /tmp/positions.yaml
+  
+clients:
+    - url: http://loki-gateway:80/loki/api/v1/push
+  
+scrape_configs:
+  - job_name: system
+    static_configs:
+    - targets:
+        - localhost
+      labels:
+        job: varlogs
+        __path__: /var/log/*log
diff --git a/production/docker/docker-compose-ha-diagram.png b/production/docker/docker-compose-ha-diagram.png
new file mode 100644
index 000000000000..5033674be92f
Binary files /dev/null and b/production/docker/docker-compose-ha-diagram.png differ
diff --git a/production/docker/docker-compose-ha-memberlist.yaml b/production/docker/docker-compose-ha-memberlist.yaml
new file mode 100644
index 000000000000..72573ba376aa
--- /dev/null
+++ b/production/docker/docker-compose-ha-memberlist.yaml
@@ -0,0 +1,88 @@
+version: "3.8"
+
+networks:
+  loki:
+
+services:
+
+  grafana:
+    image: grafana/grafana:7.2.0
+    ports:
+      - "3000:3000"
+    networks:
+      - loki
+
+  promtail:
+    image: grafana/promtail:2.0.0
+    volumes:
+      - /var/log:/var/log
+      - ./config:/etc/promtail/
+    ports:
+      - "9080:9080"
+    command: -config.file=/etc/promtail/promtail-gateway.yaml
+    networks:
+      - loki
+
+  loki-gateway:
+    image: nginx:1.19
+    volumes:
+      - ./config/nginx-loki-gateway.conf:/etc/nginx/nginx.conf
+    ports:
+      - "80"
+      - "3100"
+    networks:
+      - loki
+
+  loki-frontend:
+    image: grafana/loki:2.0.0
+    volumes:
+        - ./config:/etc/loki/
+    ports:
+        - "3100"
+    command: "-config.file=/etc/loki/loki-docker-memberlist-boltdb-shipper.yaml -target=query-frontend"
+    networks:
+      - loki
+    deploy:
+      mode: replicated
+      replicas: 2
+
+  loki-1:
+    image: grafana/loki:1.6.1
+    volumes:
+      - ./config:/etc/loki/
+      - ./chunks:/loki/chunks/
+    ports:
+      - "3100"
+      - "7946"
+    command: "-config.file=/etc/loki/loki-docker-memberlist-boltdb-shipper.yaml -target=all"
+    networks:
+      - loki
+    restart: on-failure
+
+  loki-2:
+    image: grafana/loki:1.6.1
+    volumes:
+      - ./config:/etc/loki/
+      - ./chunks:/loki/chunks/
+    ports:
+      - "3100"
+      - "7946"
+    command: "-config.file=/etc/loki/loki-docker-memberlist-boltdb-shipper.yaml -target=all"
+    # command: "-config.file=/etc/loki/loki-config.yaml"
+    networks:
+      - loki
+    restart: on-failure
+
+  loki-3:
+    image: grafana/loki:1.6.1
+    volumes:
+      - ./config:/etc/loki/
+      - ./chunks:/loki/chunks/
+    ports:
+      - "3100"
+      - "7946"
+    command: "-config.file=/etc/loki/loki-docker-memberlist-boltdb-shipper.yaml -target=all"
+    # command: "-config.file=/etc/loki/loki-config.yaml"
+    networks:
+      - loki
+    restart: on-failure