diff --git a/config/config_test.go b/config/config_test.go
index 7b6938e..d27e85a 100644
--- a/config/config_test.go
+++ b/config/config_test.go
@@ -295,9 +295,9 @@ storage:
     - path: /opt/file2
       filesystem: filesystem1
       contents:
+        compression: gzip
         remote:
           url: http://example.com/file2
-          compression: gzip
           verification:
             hash:
               function: sha512
@@ -311,9 +311,9 @@ storage:
     - path: /opt/file3
       filesystem: filesystem2
       contents:
+        compression: gzip
         remote:
           url: http://example.com/file3
-          compression: gzip
       mode: 0400
       user:
         id: 1000
@@ -503,9 +503,9 @@ storage:
 							User:       &types.FileUser{Id: util.IntToPtr(502)},
 							Group:      &types.FileGroup{Id: util.IntToPtr(503)},
 							Contents: types.FileContents{
+								Compression: "gzip",
 								Remote: types.Remote{
-									Url:         "http://example.com/file2",
-									Compression: "gzip",
+									Url: "http://example.com/file2",
 									Verification: types.Verification{
 										Hash: types.Hash{
 											Function: "sha512",
@@ -523,9 +523,9 @@ storage:
 							User:       &types.FileUser{Id: util.IntToPtr(1000)},
 							Group:      &types.FileGroup{Id: util.IntToPtr(1001)},
 							Contents: types.FileContents{
+								Compression: "gzip",
 								Remote: types.Remote{
-									Url:         "http://example.com/file3",
-									Compression: "gzip",
+									Url: "http://example.com/file3",
 								},
 							},
 							Mode:   util.IntToPtr(0400),
@@ -1197,9 +1197,9 @@ func TestConvert(t *testing.T) {
 							User:       &types.FileUser{Id: util.IntToPtr(502)},
 							Group:      &types.FileGroup{Id: util.IntToPtr(503)},
 							Contents: types.FileContents{
+								Compression: "gzip",
 								Remote: types.Remote{
-									Url:         "http://example.com/file2",
-									Compression: "gzip",
+									Url: "http://example.com/file2",
 									Verification: types.Verification{
 										Hash: types.Hash{
 											Function: "sha512",
@@ -1217,9 +1217,9 @@ func TestConvert(t *testing.T) {
 							User:       &types.FileUser{Id: util.IntToPtr(1000)},
 							Group:      &types.FileGroup{Id: util.IntToPtr(1001)},
 							Contents: types.FileContents{
+								Compression: "gzip",
 								Remote: types.Remote{
-									Url:         "http://example.com/file3",
-									Compression: "gzip",
+									Url: "http://example.com/file3",
 								},
 							},
 							Mode:   util.IntToPtr(0400),
@@ -1424,12 +1424,12 @@ func TestConvert(t *testing.T) {
 								},
 								FileEmbedded1: ignTypes.FileEmbedded1{
 									Contents: ignTypes.FileContents{
+										Compression: "gzip",
 										Source: (&url.URL{
 											Scheme: "http",
 											Host:   "example.com",
 											Path:   "/file2",
 										}).String(),
-										Compression: "gzip",
 										Verification: ignTypes.Verification{
 											Hash: util.StringToPtr("sha512-00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000"),
 										},
@@ -1930,9 +1930,9 @@ storage:
     - path: /opt/file2
       filesystem: root
       contents:
+        compression: gzip
         remote:
           url: httpz://example.com/file2
-          compression: gzip
           verification:
             hash:
               function: sha512
@@ -1955,7 +1955,7 @@ storage:
 					{
 						Message: "invalid url scheme",
 						Kind:    report.EntryError,
-						Line:    17,
+						Line:    18,
 						Column:  16,
 					},
 				}},
@@ -2017,9 +2017,9 @@ storage:
     - path: /opt/file2
       filesystem: root
       contents:
+        compression: gzip
         remote:
           url: http://example.com/file2
-          compression: gzip
           verification:
             hash:
               function: sha512
@@ -2060,12 +2060,12 @@ storage:
 							},
 							FileEmbedded1: ignTypes.FileEmbedded1{
 								Contents: ignTypes.FileContents{
+									Compression: "gzip",
 									Source: (&url.URL{
 										Scheme: "http",
 										Host:   "example.com",
 										Path:   "/file2",
 									}).String(),
-									Compression: "gzip",
 									Verification: ignTypes.Verification{
 										Hash: util.StringToPtr("sha512-00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000"),
 									},
diff --git a/config/types/files.go b/config/types/files.go
index f335667..41b39bd 100644
--- a/config/types/files.go
+++ b/config/types/files.go
@@ -63,14 +63,14 @@ type File struct {
 }
 
 type FileContents struct {
-	Remote Remote `yaml:"remote"`
-	Inline string `yaml:"inline"`
-	Local  string `yaml:"local"`
+	Compression string `yaml:"compression"`
+	Remote      Remote `yaml:"remote"`
+	Inline      string `yaml:"inline"`
+	Local       string `yaml:"local"`
 }
 
 type Remote struct {
 	Url          string       `yaml:"url"`
-	Compression  string       `yaml:"compression"`
 	Verification Verification `yaml:"verification"`
 }
 
@@ -237,7 +237,7 @@ func init() {
 				}
 			}
 
-			newFile.Contents.Compression = file.Contents.Remote.Compression
+			newFile.Contents.Compression = file.Contents.Compression
 			newFile.Contents.Verification = convertVerification(file.Contents.Remote.Verification)
 
 			out.Storage.Files = append(out.Storage.Files, newFile)
diff --git a/doc/configuration.md b/doc/configuration.md
index e4fe566..f66ff6b 100644
--- a/doc/configuration.md
+++ b/doc/configuration.md
@@ -63,10 +63,10 @@ _Note: all fields are optional unless otherwise marked_
     * **overwrite** (boolean): whether to delete preexisting nodes at the path. Defaults to true.
     * **append** (boolean): whether to append to the specified file. Creates a new file if nothing exists at the path. Cannot be set if overwrite is set to true.
     * **contents** (object): options related to the contents of the file.
+      * **compression** (string): the type of compression used on the contents (null or gzip)
       * **inline** (string): the contents of the file.
       * **local** (string): the path to a local file, relative to the `--files-dir` directory. When using local files, the `--files-dir` flag must be passed to `ct`. The file contents are included in the generated config.
       * **remote** (object): options related to the fetching of remote file contents. Remote files are fetched by Ignition when Ignition runs, the contents are not included in the generated config.
-        * **compression** (string): the type of compression used on the contents (null or gzip)
         * **url** (string): the URL of the file contents. Supported schemes are http, https, tftp, s3, and [data][rfc2397]. Note: When using http, it is advisable to use the verification option to ensure the contents haven't been modified.
         * **verification** (object): options related to the verification of the file contents.
           * **hash** (object): the hash of the config
diff --git a/doc/examples.md b/doc/examples.md
index 42e587b..51d9615 100644
--- a/doc/examples.md
+++ b/doc/examples.md
@@ -93,9 +93,9 @@ storage:
     - path: /opt/file2
       filesystem: root
       contents:
+        compression: gzip
         remote:
           url: http://example.com/file2
-          compression: gzip
           verification:
             hash:
               function: sha512