diff --git a/cmd/otelcol/main.go b/cmd/otelcol/main.go
index 9cc4612149..177b3866c1 100644
--- a/cmd/otelcol/main.go
+++ b/cmd/otelcol/main.go
@@ -79,11 +79,10 @@ func main() {
 		Version: version.Version,
 	}
 
-	ballastSizeMib, _ := strconv.Atoi(os.Getenv(ballastEnvVarName))
 	serviceParams := service.CollectorSettings{
 		BuildInfo:      info,
 		Factories:      factories,
-		ParserProvider: ballastParserProvider(info, ballastSizeMib),
+		ParserProvider: memLimitRemoverParserProvider(info),
 	}
 
 	if err := run(serviceParams); err != nil {
@@ -91,17 +90,17 @@ func main() {
 	}
 }
 
-func ballastParserProvider(info component.BuildInfo, ballastSizeMib int) parserprovider.ParserProvider {
+// memLimitRemoverParserProvider removes a ballast_size_mib key from a memory
+// limiter processor, if it exists. Support for this key will be (or has been)
+// removed and will cause the Collector to not start.
+func memLimitRemoverParserProvider(info component.BuildInfo) parserprovider.ParserProvider {
 	cfgSourcePP := configprovider.NewConfigSourceParserProvider(
 		newBaseParserProvider(),
 		zap.NewNop(), // The service logger is not available yet, setting it to NoP.
 		info,
 		configsources.Get()...,
 	)
-	if ballastSizeMib == 0 {
-		return cfgSourcePP
-	}
-	return configprovider.BallastParserProvider(cfgSourcePP, ballastSizeMib)
+	return configprovider.NewMemLimitRemoverParserProvider(cfgSourcePP)
 }
 
 // Check whether a string exists in an array of CLI arguments
diff --git a/internal/configprovider/ballast_parser_provider.go b/internal/configprovider/ballast_parser_provider.go
deleted file mode 100644
index 04f54139bd..0000000000
--- a/internal/configprovider/ballast_parser_provider.go
+++ /dev/null
@@ -1,93 +0,0 @@
-// Copyright The OpenTelemetry Authors
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//       http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-
-package configprovider
-
-import (
-	"fmt"
-	"log"
-	"strings"
-
-	"go.opentelemetry.io/collector/config/configparser"
-	"go.opentelemetry.io/collector/service/parserprovider"
-)
-
-const (
-	serviceExtensionsPath       = "service::extensions"
-	extensionsMemoryBallastPath = "extensions::memory_ballast::size_mib"
-	memoryBallast               = "memory_ballast"
-)
-
-// ballastParserProvider implements ParserProvider and wraps another ParserProvider,
-// adding a memory_ballast extension to the wrapped Otel config if one isn't already
-// present.
-type ballastParserProvider struct {
-	pp      parserprovider.ParserProvider
-	sizeMib int
-}
-
-var _ parserprovider.ParserProvider = (*ballastParserProvider)(nil)
-
-func BallastParserProvider(pp parserprovider.ParserProvider, sizeMib int) parserprovider.ParserProvider {
-	return &ballastParserProvider{
-		pp:      pp,
-		sizeMib: sizeMib,
-	}
-}
-
-func (bpp ballastParserProvider) Get() (*configparser.ConfigMap, error) {
-	cfgMap, err := bpp.pp.Get()
-	if err != nil {
-		return nil, fmt.Errorf("ballastParserProvider.Get(): %w", err)
-	}
-	if hasBallastExtension(cfgMap) {
-		return cfgMap, nil
-	}
-	log.Println("Extension `memory_ballast` not found in config. Adding and enabling a `memory_ballast` extension.")
-	return cfgMapWithBallastExt(cfgMap, bpp.sizeMib), nil
-}
-
-func hasBallastExtension(cfgMap *configparser.ConfigMap) bool {
-	for _, key := range cfgMap.AllKeys() {
-		if key == serviceExtensionsPath {
-			if exts, ok := cfgMap.Get(key).([]interface{}); ok && extensionsContainMemoryBallast(exts) {
-				return true
-			}
-		}
-	}
-	return false
-}
-
-func extensionsContainMemoryBallast(extensions []interface{}) bool {
-	for _, v := range extensions {
-		if s, ok := v.(string); ok && isMemoryBallastComponent(s) {
-			return true
-		}
-	}
-	return false
-}
-
-func isMemoryBallastComponent(extName string) bool {
-	return extName == memoryBallast || strings.HasPrefix(extName, memoryBallast+"/")
-}
-
-func cfgMapWithBallastExt(parser *configparser.ConfigMap, sizeMib int) *configparser.ConfigMap {
-	out := configparser.NewParser()
-	for _, k := range parser.AllKeys() {
-		out.Set(k, parser.Get(k))
-	}
-	out.Set(extensionsMemoryBallastPath, sizeMib)
-	out.Set(serviceExtensionsPath, []interface{}{memoryBallast})
-	return out
-}
diff --git a/internal/configprovider/ballast_parser_provider_test.go b/internal/configprovider/ballast_parser_provider_test.go
deleted file mode 100644
index dd6df869a0..0000000000
--- a/internal/configprovider/ballast_parser_provider_test.go
+++ /dev/null
@@ -1,69 +0,0 @@
-// Copyright The OpenTelemetry Authors
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//       http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-
-package configprovider
-
-import (
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-	"github.com/stretchr/testify/require"
-)
-
-func TestBallastParserProvider(t *testing.T) {
-	tests := []struct {
-		name        string
-		fname       string
-		cfgKey      string
-		expectedVal int
-	}{
-		{
-			name:        "percentage",
-			fname:       "testdata/ballast_percentage.yaml",
-			cfgKey:      "extensions::memory_ballast::size_in_percentage",
-			expectedVal: 20,
-		},
-		{
-			name:        "mib",
-			fname:       "testdata/ballast_mib.yaml",
-			cfgKey:      "extensions::memory_ballast::size_mib",
-			expectedVal: 64,
-		},
-		{
-			name:        "custom",
-			fname:       "testdata/ballast_custom.yaml",
-			cfgKey:      "extensions::memory_ballast/foo::size_in_percentage",
-			expectedVal: 20,
-		},
-		{
-			name:        "missing",
-			fname:       "testdata/ballast_missing.yaml",
-			cfgKey:      "extensions::memory_ballast::size_mib",
-			expectedVal: 128,
-		},
-	}
-	for _, test := range tests {
-		t.Run(test.name, func(t *testing.T) {
-			bpp := &ballastParserProvider{
-				pp:      &fileParserProvider{FileName: test.fname},
-				sizeMib: 128,
-			}
-			cfgMap, err := bpp.Get()
-			require.NoError(t, err)
-			hasExt := hasBallastExtension(cfgMap)
-			assert.True(t, hasExt)
-			assert.Equal(t, test.expectedVal, cfgMap.Get(test.cfgKey))
-		})
-	}
-}
diff --git a/internal/configprovider/mem_limit_ballast_remover_parser_provider.go b/internal/configprovider/mem_limit_ballast_remover_parser_provider.go
new file mode 100644
index 0000000000..5908b98907
--- /dev/null
+++ b/internal/configprovider/mem_limit_ballast_remover_parser_provider.go
@@ -0,0 +1,65 @@
+// Copyright The OpenTelemetry Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//       http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package configprovider
+
+import (
+	"fmt"
+	"log"
+	"regexp"
+
+	"go.opentelemetry.io/collector/config/configparser"
+	"go.opentelemetry.io/collector/service/parserprovider"
+)
+
+var ballastKeyRegexp *regexp.Regexp
+
+func init() {
+	const expr = "processors::memory_limiter(/\\w+)?::ballast_size_mib"
+	ballastKeyRegexp, _ = regexp.Compile(expr)
+}
+
+// memLimitBallastRemoverParserProvider implements ParserProvider, wraps a
+// ParserProvider, and removes any ballast_size_mib key from the memory_limiter
+// processor, if one exists, from the wrapped config. This is to ensure that the
+// Collector will still start when support for this key gets removed.
+type memLimitBallastRemoverParserProvider struct {
+	pp parserprovider.ParserProvider
+}
+
+var _ parserprovider.ParserProvider = (*memLimitBallastRemoverParserProvider)(nil)
+
+func NewMemLimitRemoverParserProvider(pp parserprovider.ParserProvider) parserprovider.ParserProvider {
+	return &memLimitBallastRemoverParserProvider{pp: pp}
+}
+
+func (mpp memLimitBallastRemoverParserProvider) Get() (*configparser.ConfigMap, error) {
+	cfgMap, err := mpp.pp.Get()
+	if err != nil {
+		return nil, fmt.Errorf("memLimitBallastRemoverParserProvider.Get(): %w", err)
+	}
+	out := configparser.NewParser()
+	for _, k := range cfgMap.AllKeys() {
+		if isMemLimitBallastKey(k) {
+			log.Println("Deprecated memory_limiter processor `ballast_size_mib` key found. Removing from config.")
+		} else {
+			out.Set(k, cfgMap.Get(k))
+		}
+	}
+	return out, nil
+}
+
+func isMemLimitBallastKey(k string) bool {
+	return ballastKeyRegexp.MatchString(k)
+}
diff --git a/internal/configprovider/mem_limit_ballast_remover_parser_provider_test.go b/internal/configprovider/mem_limit_ballast_remover_parser_provider_test.go
new file mode 100644
index 0000000000..6699d9ffed
--- /dev/null
+++ b/internal/configprovider/mem_limit_ballast_remover_parser_provider_test.go
@@ -0,0 +1,58 @@
+// Copyright The OpenTelemetry Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//       http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package configprovider
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestIsMemLimitBallastKey(t *testing.T) {
+	assert.False(t, isMemLimitBallastKey("processors::ballast_size_mib"))
+	assert.True(t, isMemLimitBallastKey("processors::memory_limiter::ballast_size_mib"))
+	assert.True(t, isMemLimitBallastKey("processors::memory_limiter/foo::ballast_size_mib"))
+}
+
+func TestMemLimitBallastRemoverPP(t *testing.T) {
+	tests := []struct {
+		name  string
+		fname string
+		key   string
+	}{
+		{
+			name:  "default",
+			fname: "testdata/ballast_mem_limiter.yaml",
+			key:   "processors::memory_limiter::ballast_size_mib",
+		},
+		{
+			name:  "custom",
+			fname: "testdata/ballast_mem_limiter_custom.yaml",
+			key:   "processors::memory_limiter/foo::ballast_size_mib",
+		},
+	}
+	for _, test := range tests {
+		t.Run(test.name, func(t *testing.T) {
+			pp := &memLimitBallastRemoverParserProvider{
+				&fileParserProvider{FileName: test.fname},
+			}
+			cfgMap, err := pp.Get()
+			require.NoError(t, err)
+			b := cfgMap.IsSet(test.key)
+			assert.False(t, b)
+		})
+	}
+}
diff --git a/internal/configprovider/testdata/ballast_custom.yaml b/internal/configprovider/testdata/ballast_custom.yaml
deleted file mode 100644
index c4000f0d3b..0000000000
--- a/internal/configprovider/testdata/ballast_custom.yaml
+++ /dev/null
@@ -1,22 +0,0 @@
-extensions:
-  memory_ballast/foo:
-    size_in_percentage: 20
-receivers:
-  hostmetrics:
-    collection_interval: 1s
-    scrapers:
-      cpu:
-exporters:
-  logging:
-    loglevel: info
-    sampling_initial: 2
-    sampling_thereafter: 500
-service:
-  pipelines:
-    metrics:
-      receivers:
-        - hostmetrics
-      exporters:
-        - logging
-  extensions:
-    - memory_ballast/foo
diff --git a/internal/configprovider/testdata/ballast_mib.yaml b/internal/configprovider/testdata/ballast_mem_limiter.yaml
similarity index 68%
rename from internal/configprovider/testdata/ballast_mib.yaml
rename to internal/configprovider/testdata/ballast_mem_limiter.yaml
index 6e01605930..7ccd5fb8b0 100644
--- a/internal/configprovider/testdata/ballast_mib.yaml
+++ b/internal/configprovider/testdata/ballast_mem_limiter.yaml
@@ -6,6 +6,12 @@ receivers:
     collection_interval: 1s
     scrapers:
       cpu:
+processors:
+  memory_limiter:
+    check_interval: 1s
+    limit_mib: 4000
+    spike_limit_mib: 800
+    ballast_size_mib: 64
 exporters:
   logging:
     loglevel: info
@@ -16,6 +22,8 @@ service:
     metrics:
       receivers:
         - hostmetrics
+      processors:
+        - memory_limiter
       exporters:
         - logging
   extensions:
diff --git a/internal/configprovider/testdata/ballast_percentage.yaml b/internal/configprovider/testdata/ballast_mem_limiter_custom.yaml
similarity index 64%
rename from internal/configprovider/testdata/ballast_percentage.yaml
rename to internal/configprovider/testdata/ballast_mem_limiter_custom.yaml
index bc9ef31fd9..b97f16435b 100644
--- a/internal/configprovider/testdata/ballast_percentage.yaml
+++ b/internal/configprovider/testdata/ballast_mem_limiter_custom.yaml
@@ -1,11 +1,17 @@
 extensions:
   memory_ballast:
-    size_in_percentage: 20
+    size_mib: 64
 receivers:
   hostmetrics:
     collection_interval: 1s
     scrapers:
       cpu:
+processors:
+  memory_limiter/foo:
+    check_interval: 1s
+    limit_mib: 4000
+    spike_limit_mib: 800
+    ballast_size_mib: 64
 exporters:
   logging:
     loglevel: info
@@ -16,6 +22,8 @@ service:
     metrics:
       receivers:
         - hostmetrics
+      processors:
+        - memory_limiter/foo
       exporters:
         - logging
   extensions:
diff --git a/internal/configprovider/testdata/ballast_missing.yaml b/internal/configprovider/testdata/ballast_missing.yaml
deleted file mode 100644
index 57e9fb249e..0000000000
--- a/internal/configprovider/testdata/ballast_missing.yaml
+++ /dev/null
@@ -1,17 +0,0 @@
-receivers:
-  hostmetrics:
-    collection_interval: 1s
-    scrapers:
-      cpu:
-exporters:
-  logging:
-    loglevel: info
-    sampling_initial: 2
-    sampling_thereafter: 500
-service:
-  pipelines:
-    metrics:
-      receivers:
-        - hostmetrics
-      exporters:
-        - logging