diff --git a/internal/start/start.go b/internal/start/start.go
index 9096f381d..f31a950cc 100644
--- a/internal/start/start.go
+++ b/internal/start/start.go
@@ -169,6 +169,8 @@ func run(p utils.Program, ctx context.Context, fsys afero.Fs, excludedContainers
 
 	var started []string
 	var isStorageEnabled = utils.Config.Storage.Enabled && !isContainerExcluded(utils.Config.Storage.Image, excluded)
+	var isImgProxyEnabled = utils.Config.Storage.ImageTransformation != nil &&
+		utils.Config.Storage.ImageTransformation.Enabled && !isContainerExcluded(utils.Config.Storage.ImgProxyImage, excluded)
 	p.Send(utils.StatusMsg("Starting containers..."))
 
 	// Start Logflare
@@ -833,7 +835,7 @@ EOF
 					// TODO: https://github.com/supabase/storage-api/issues/55
 					"STORAGE_S3_REGION=" + utils.Config.Storage.S3Credentials.Region,
 					"GLOBAL_S3_BUCKET=stub",
-					fmt.Sprintf("ENABLE_IMAGE_TRANSFORMATION=%t", utils.Config.Storage.ImageTransformation.Enabled),
+					fmt.Sprintf("ENABLE_IMAGE_TRANSFORMATION=%t", isImgProxyEnabled),
 					fmt.Sprintf("IMGPROXY_URL=http://%s:5001", utils.ImgProxyId),
 					"TUS_URL_PATH=/storage/v1/upload/resumable",
 					"S3_PROTOCOL_ACCESS_KEY_ID=" + utils.Config.Storage.S3Credentials.AccessKeyId,
@@ -872,11 +874,11 @@ EOF
 	}
 
 	// Start Storage ImgProxy.
-	if isStorageEnabled && utils.Config.Storage.ImageTransformation.Enabled && !isContainerExcluded(utils.Config.Storage.ImageTransformation.Image, excluded) {
+	if isStorageEnabled && isImgProxyEnabled {
 		if _, err := utils.DockerStart(
 			ctx,
 			container.Config{
-				Image: utils.Config.Storage.ImageTransformation.Image,
+				Image: utils.Config.Storage.ImgProxyImage,
 				Env: []string{
 					"IMGPROXY_BIND=:5001",
 					"IMGPROXY_LOCAL_FILESYSTEM_ROOT=/",
diff --git a/internal/start/start_test.go b/internal/start/start_test.go
index 079eb3c79..b61cb9cd4 100644
--- a/internal/start/start_test.go
+++ b/internal/start/start_test.go
@@ -133,7 +133,7 @@ func TestDatabaseStart(t *testing.T) {
 		utils.StorageId = "test-storage"
 		apitest.MockDockerStart(utils.Docker, utils.GetRegistryImageUrl(utils.Config.Storage.Image), utils.StorageId)
 		utils.ImgProxyId = "test-imgproxy"
-		apitest.MockDockerStart(utils.Docker, utils.GetRegistryImageUrl(utils.Config.Storage.ImageTransformation.Image), utils.ImgProxyId)
+		apitest.MockDockerStart(utils.Docker, utils.GetRegistryImageUrl(utils.Config.Storage.ImgProxyImage), utils.ImgProxyId)
 		utils.EdgeRuntimeId = "test-edge-runtime"
 		apitest.MockDockerStart(utils.Docker, utils.GetRegistryImageUrl(utils.Config.EdgeRuntime.Image), utils.EdgeRuntimeId)
 		utils.PgmetaId = "test-pgmeta"
diff --git a/pkg/config/config.go b/pkg/config/config.go
index 410bd7aa3..5c7fc0946 100644
--- a/pkg/config/config.go
+++ b/pkg/config/config.go
@@ -300,15 +300,13 @@ func NewConfig(editors ...ConfigEditor) config {
 			SecretKeyBase:   "EAx3IQ/wRG1v47ZD4NE4/9RzBI8Jmil3x0yhcW4V2NHBP6c2iPIzwjofi2Ep4HIG",
 		},
 		Storage: storage{
-			Image: storageImage,
+			Image:         storageImage,
+			ImgProxyImage: imageProxyImage,
 			S3Credentials: storageS3Credentials{
 				AccessKeyId:     "625729a08b95bf1b7ff351a663f3a23c",
 				SecretAccessKey: "850181e4652dd023b7a98c58ae0d2d34bd487ee0cc3254aed6eda37307425907",
 				Region:          "local",
 			},
-			ImageTransformation: imageTransformation{
-				Image: imageProxyImage,
-			},
 		},
 		Auth: auth{
 			Image: gotrueImage,
diff --git a/pkg/config/storage.go b/pkg/config/storage.go
index b11b28a10..3b5696738 100644
--- a/pkg/config/storage.go
+++ b/pkg/config/storage.go
@@ -10,15 +10,15 @@ type (
 	storage struct {
 		Enabled             bool                 `toml:"enabled"`
 		Image               string               `toml:"-"`
+		ImgProxyImage       string               `toml:"-"`
 		FileSizeLimit       sizeInBytes          `toml:"file_size_limit"`
+		ImageTransformation *imageTransformation `toml:"image_transformation"`
 		S3Credentials       storageS3Credentials `toml:"-"`
-		ImageTransformation imageTransformation  `toml:"image_transformation"`
 		Buckets             BucketConfig         `toml:"buckets"`
 	}
 
 	imageTransformation struct {
-		Enabled bool   `toml:"enabled"`
-		Image   string `toml:"-"`
+		Enabled bool `toml:"enabled"`
 	}
 
 	storageS3Credentials struct {
@@ -38,15 +38,26 @@ type (
 )
 
 func (s *storage) ToUpdateStorageConfigBody() v1API.UpdateStorageConfigBody {
-	body := v1API.UpdateStorageConfigBody{Features: &v1API.StorageFeatures{}}
-	body.FileSizeLimit = cast.Ptr(int64(s.FileSizeLimit))
-	body.Features.ImageTransformation.Enabled = s.ImageTransformation.Enabled
+	body := v1API.UpdateStorageConfigBody{
+		FileSizeLimit: cast.Ptr(int64(s.FileSizeLimit)),
+	}
+	// When local config is not set, we assume platform defaults should not change
+	if s.ImageTransformation != nil {
+		body.Features = &v1API.StorageFeatures{
+			ImageTransformation: v1API.StorageFeatureImageTransformation{
+				Enabled: s.ImageTransformation.Enabled,
+			},
+		}
+	}
 	return body
 }
 
 func (s *storage) FromRemoteStorageConfig(remoteConfig v1API.StorageConfigResponse) {
 	s.FileSizeLimit = sizeInBytes(remoteConfig.FileSizeLimit)
-	s.ImageTransformation.Enabled = remoteConfig.Features.ImageTransformation.Enabled
+	// When local config is not set, we assume platform defaults should not change
+	if s.ImageTransformation != nil {
+		s.ImageTransformation.Enabled = remoteConfig.Features.ImageTransformation.Enabled
+	}
 }
 
 func (s *storage) DiffWithRemote(remoteConfig v1API.StorageConfigResponse) ([]byte, error) {
diff --git a/pkg/config/templates/config.toml b/pkg/config/templates/config.toml
index e3f55ae68..5345f4d0d 100644
--- a/pkg/config/templates/config.toml
+++ b/pkg/config/templates/config.toml
@@ -83,8 +83,8 @@ enabled = true
 file_size_limit = "50MiB"
 
 # Image transformation API is available to Supabase Pro plan.
-[storage.image_transformation]
-enabled = false
+# [storage.image_transformation]
+# enabled = true
 
 # Uncomment to configure local storage buckets
 # [storage.buckets.images]
diff --git a/pkg/config/updater_test.go b/pkg/config/updater_test.go
index 471e84963..f3eb0bcb4 100644
--- a/pkg/config/updater_test.go
+++ b/pkg/config/updater_test.go
@@ -336,7 +336,7 @@ func TestUpdateRemoteConfig(t *testing.T) {
 			Storage: storage{
 				Enabled:       true,
 				FileSizeLimit: 100,
-				ImageTransformation: imageTransformation{
+				ImageTransformation: &imageTransformation{
 					Enabled: true,
 				},
 			},