diff --git a/README.md b/README.md
index c8562e61..bb95f1f1 100644
--- a/README.md
+++ b/README.md
@@ -1038,9 +1038,11 @@ For some cases, if e.g. after removing mods, it could be necessary to startup mi
 
 ### HTTP Proxy
 
-You may configure the use of an HTTP/HTTPS proxy by passing the proxy's URL via the `HTTPS_PROXY` and `HTTP_PROXY` environment variables.
+You may configure the use of an HTTP/HTTPS proxy by passing the proxy's URL via the `PROXY`
+environment variable. In [the example compose file](docker-compose-proxied.yml) it references
+a companion squid proxy by setting the equivalent of
 
-    -e HTTPS_PROXY=proxy:3128
+    -e PROXY=proxy:3128
 
 ### Using "noconsole" option
 
diff --git a/examples/docker-compose-proxied.yml b/examples/docker-compose-proxied.yml
new file mode 100644
index 00000000..e116f240
--- /dev/null
+++ b/examples/docker-compose-proxied.yml
@@ -0,0 +1,16 @@
+version: '3'
+
+services:
+  mc:
+#    build: .
+    image: itzg/minecraft-server
+    ports:
+      - 25565:25565
+    environment:
+      EULA: "TRUE"
+#      TYPE: SPIGOT
+#      VERSION: 1.11.2
+      PROXY: proxy:3128
+  proxy:
+    image: sameersbn/squid
+