diff --git a/apps/proxy/.env.example b/apps/proxy/.env.example
index c87db2f7..adf3c16f 100644
--- a/apps/proxy/.env.example
+++ b/apps/proxy/.env.example
@@ -3,6 +3,14 @@ AWS_ENDPOINT_URL_S3=http://host.docker.internal:54321/storage/v1/s3
 AWS_S3_BUCKET=s3fs
 AWS_SECRET_ACCESS_KEY=850181e4652dd023b7a98c58ae0d2d34bd487ee0cc3254aed6eda37307425907
 AWS_REGION=local
+# Cache disk usage threshold in percentage of the total disk space
+CACHE_DISK_USAGE_THRESHOLD=90
+CACHE_PATH=/var/lib/postgres-new/cache
+# Cache schedule interval in hours
+CACHE_SCHEDULE_INTERVAL=1
+CACHE_TIMESTAMP_FILE=/var/lib/postgres-new/delete_cache_last_run
+# Cache time to live in hours
+CACHE_TTL=24
 S3FS_MOUNT=/mnt/s3
 SUPABASE_SERVICE_ROLE_KEY="<service-role-key>"
 SUPABASE_URL="<supabase-url>"
diff --git a/apps/proxy/fly.toml b/apps/proxy/fly.toml
index d1d5a7dc..9810d8c4 100644
--- a/apps/proxy/fly.toml
+++ b/apps/proxy/fly.toml
@@ -6,6 +6,15 @@ primary_region = 'iad'
 dockerfile = "Dockerfile"
 ignorefile = ".dockerignore"
 
+[env]
+CACHE_DISK_USAGE_THRESHOLD = "90"
+CACHE_SCHEDULE_INTERVAL = "1"
+CACHE_TIMESTAMP_FILE = "/var/lib/postgres-new/delete_cache_last_run"
+CACHE_TTL = "24"
+CACHE_PATH = "/var/lib/postgres-new/cache"
+S3FS_MOUNT = "/mnt/s3"
+WILDCARD_DOMAIN = "db.postgres.new"
+
 [[services]]
 internal_port = 5432
 protocol = "tcp"
diff --git a/apps/proxy/package.json b/apps/proxy/package.json
index ae0d28c0..dd74a2c7 100644
--- a/apps/proxy/package.json
+++ b/apps/proxy/package.json
@@ -14,7 +14,8 @@
     "@supabase/supabase-js": "^2.45.1",
     "find-up": "^7.0.0",
     "pg-gateway": "0.3.0-alpha.6",
-    "tar": "^7.4.3"
+    "tar": "^7.4.3",
+    "zod": "^3.23.8"
   },
   "devDependencies": {
     "@postgres-new/supabase": "*",
diff --git a/apps/proxy/src/delete-cache.ts b/apps/proxy/src/delete-cache.ts
new file mode 100644
index 00000000..df430acd
--- /dev/null
+++ b/apps/proxy/src/delete-cache.ts
@@ -0,0 +1,110 @@
+import * as fs from 'node:fs/promises'
+import * as path from 'node:path'
+import { exec } from 'node:child_process'
+import { promisify } from 'node:util'
+import { env } from './env.js'
+const execAsync = promisify(exec)
+
+async function deleteOldFolders() {
+  const now = Date.now()
+  const ttlInMillis = env.CACHE_TTL * 60 * 60 * 1000
+
+  try {
+    const folders = await fs.readdir(env.CACHE_PATH)
+    for (const folder of folders) {
+      const folderPath = path.join(env.CACHE_PATH, folder)
+      const stats = await fs.stat(folderPath)
+
+      if (stats.isDirectory() && now - stats.mtimeMs > ttlInMillis) {
+        await fs.rm(folderPath, { recursive: true, force: true })
+        console.log(`Deleted folder: ${folderPath}`)
+      }
+    }
+  } catch (err) {
+    console.error('Failed to delete old folders:', err)
+  }
+}
+
+async function scriptAlreadyRan() {
+  try {
+    const lastRun = parseInt(await fs.readFile(env.CACHE_TIMESTAMP_FILE, 'utf8'))
+    const now = Math.floor(Date.now() / 1000)
+    const diff = now - lastRun
+    return diff < env.CACHE_SCHEDULE_INTERVAL * 60 * 60 * 1000
+  } catch (err) {
+    // File does not exist
+    if (err instanceof Error && 'code' in err && err.code === 'ENOENT') {
+      return false
+    }
+    throw err
+  }
+}
+
+async function updateTimestampFile() {
+  const now = Math.floor(Date.now() / 1000).toString()
+  await fs.writeFile(env.CACHE_TIMESTAMP_FILE, now)
+}
+
+/**
+ * Get the disk usage of the root directory
+ */
+async function getDiskUsage() {
+  // awk 'NR==2 {print $5}' prints the 5th column of the df command which contains the percentage of the total disk space used
+  // sed 's/%//' removes the % from the output
+  const command = `df / | awk 'NR==2 {print $5}' | sed 's/%//'`
+  const { stdout } = await execAsync(command)
+  return parseInt(stdout.trim(), 10)
+}
+
+async function getFoldersByModificationTime() {
+  const folders = await fs.readdir(env.CACHE_PATH, { withFileTypes: true })
+  const folderStats = await Promise.all(
+    folders
+      .filter((dirent) => dirent.isDirectory())
+      .map(async (dirent) => {
+        const fullPath = path.join(env.CACHE_PATH, dirent.name)
+        const stats = await fs.stat(fullPath)
+        return { path: fullPath, mtime: stats.mtime.getTime() }
+      })
+  )
+  return folderStats.sort((a, b) => a.mtime - b.mtime).map((folder) => folder.path)
+}
+
+export async function deleteCache() {
+  if (await scriptAlreadyRan()) {
+    console.log(`Script already ran in the last ${env.CACHE_SCHEDULE_INTERVAL} hours, skipping.`)
+    return
+  }
+
+  await updateTimestampFile()
+
+  // Always delete old folders based on TTL
+  await deleteOldFolders()
+
+  let diskUsage = await getDiskUsage()
+
+  // If disk usage exceeds the threshold, delete additional old folders
+  if (diskUsage >= env.CACHE_DISK_USAGE_THRESHOLD) {
+    console.log(
+      `Disk usage is at ${diskUsage}%, which is above the threshold of ${env.CACHE_DISK_USAGE_THRESHOLD}%.`
+    )
+
+    const folders = await getFoldersByModificationTime()
+
+    // Loop through the folders and delete them one by one until disk usage is below the threshold
+    for (const folder of folders) {
+      console.log(`Deleting folder: ${folder}`)
+      await fs.rm(folder, { recursive: true, force: true })
+
+      diskUsage = await getDiskUsage()
+      if (diskUsage < env.CACHE_DISK_USAGE_THRESHOLD) {
+        console.log(`Disk usage is now at ${diskUsage}%, which is below the threshold.`)
+        break
+      }
+    }
+  } else {
+    console.log(
+      `Disk usage is at ${diskUsage}%, which is below the threshold of ${env.CACHE_DISK_USAGE_THRESHOLD}%.`
+    )
+  }
+}
diff --git a/apps/proxy/src/env.ts b/apps/proxy/src/env.ts
new file mode 100644
index 00000000..cb36f7c9
--- /dev/null
+++ b/apps/proxy/src/env.ts
@@ -0,0 +1,21 @@
+import { z } from 'zod'
+
+export const env = z
+  .object({
+    AWS_ACCESS_KEY_ID: z.string(),
+    AWS_ENDPOINT_URL_S3: z.string(),
+    AWS_S3_BUCKET: z.string(),
+    AWS_SECRET_ACCESS_KEY: z.string(),
+    AWS_REGION: z.string(),
+    CACHE_DISK_USAGE_THRESHOLD: z.string().transform((val) => parseInt(val, 10)),
+    CACHE_PATH: z.string(),
+    CACHE_SCHEDULE_INTERVAL: z.string().transform((val) => parseInt(val, 10)),
+    CACHE_TIMESTAMP_FILE: z.string(),
+    CACHE_TTL: z.string().transform((val) => parseInt(val, 10)),
+    DATA_MOUNT: z.string(),
+    S3FS_MOUNT: z.string(),
+    SUPABASE_SERVICE_ROLE_KEY: z.string(),
+    SUPABASE_URL: z.string(),
+    WILDCARD_DOMAIN: z.string(),
+  })
+  .parse(process.env)
diff --git a/apps/proxy/src/index.ts b/apps/proxy/src/index.ts
index b8939c2f..894ff143 100644
--- a/apps/proxy/src/index.ts
+++ b/apps/proxy/src/index.ts
@@ -10,12 +10,15 @@ import { PostgresConnection, ScramSha256Data, TlsOptions } from 'pg-gateway'
 import { createClient } from '@supabase/supabase-js'
 import type { Database } from '@postgres-new/supabase'
 import { findUp } from 'find-up'
+import { env } from './env.js'
+import { deleteCache } from './delete-cache.js'
+import path from 'node:path'
+
+const supabaseUrl = env.SUPABASE_URL
+const supabaseKey = env.SUPABASE_SERVICE_ROLE_KEY
+const s3fsMount = env.S3FS_MOUNT
+const wildcardDomain = env.WILDCARD_DOMAIN
 
-const supabaseUrl = process.env.SUPABASE_URL ?? 'http://127.0.0.1:54321'
-const supabaseKey = process.env.SUPABASE_SERVICE_ROLE_KEY ?? ''
-const dataMount = process.env.DATA_MOUNT ?? './data'
-const s3fsMount = process.env.S3FS_MOUNT ?? './s3'
-const wildcardDomain = process.env.WILDCARD_DOMAIN ?? 'db.example.com'
 const packageLockJsonPath = await findUp('package-lock.json')
 if (!packageLockJsonPath) {
   throw new Error('package-lock.json not found')
@@ -31,10 +34,9 @@ const pgliteVersion = `(PGlite ${packageLockJson.packages['node_modules/@electri
 
 const dumpDir = `${s3fsMount}/dbs`
 const tlsDir = `${s3fsMount}/tls`
-const dbDir = `${dataMount}/dbs`
 
 await mkdir(dumpDir, { recursive: true })
-await mkdir(dbDir, { recursive: true })
+await mkdir(env.CACHE_PATH, { recursive: true })
 await mkdir(tlsDir, { recursive: true })
 
 const tls: TlsOptions = {
@@ -77,6 +79,10 @@ const supabase = createClient<Database>(supabaseUrl, supabaseKey)
 const server = net.createServer((socket) => {
   let db: PGliteInterface
 
+  deleteCache().catch((err) => {
+    console.error(`Error deleting cache: ${err}`)
+  })
+
   const connection = new PostgresConnection(socket, {
     serverVersion: async () => {
       const {
@@ -161,12 +167,12 @@ const server = net.createServer((socket) => {
 
       console.log(`Serving database '${databaseId}'`)
 
-      const dbPath = `${dbDir}/${databaseId}`
+      const dbPath = path.join(env.CACHE_PATH, databaseId)
 
       if (!(await fileExists(dbPath))) {
         console.log(`Database '${databaseId}' is not cached, downloading...`)
 
-        const dumpPath = `${dumpDir}/${databaseId}.tar.gz`
+        const dumpPath = path.join(dumpDir, `${databaseId}.tar.gz`)
 
         if (!(await fileExists(dumpPath))) {
           connection.sendError({
diff --git a/package-lock.json b/package-lock.json
index 4eb6f9b6..19ec721a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -20,7 +20,8 @@
         "@supabase/supabase-js": "^2.45.1",
         "find-up": "^7.0.0",
         "pg-gateway": "0.3.0-alpha.6",
-        "tar": "^7.4.3"
+        "tar": "^7.4.3",
+        "zod": "^3.23.8"
       },
       "devDependencies": {
         "@postgres-new/supabase": "*",