diff --git a/README.md b/README.md
index e2ca75d..031fed6 100644
--- a/README.md
+++ b/README.md
@@ -59,11 +59,18 @@ These models (default ephemeral) make it possible to inspect tables, columns, co
 
 #### compress_table ([source](macros/compression.sql))
 
-This macro returns the SQL required to auto-compress a table using the results of an `analyze compression` query. All comments, constraints, keys, and indexes are copied to the newly compressed table by this macro. Additionally, sort and dist keys can be provided to override the settings from the source table. By default, a backup table is made which is _not_ deleted. To delete this backup table after a successful copy, use `drop_backup` flag.
+This macro returns the SQL required to auto-compress a table using the results of an `analyze compression` query. 
+
+If `in_place=False` (default behavior), the table is renamed to `{{ table }}__backup` and replaced by a deep copy that utilizes the recommended encodings. All comments, constraints, keys, and indexes are copied to the newly compressed table by this macro. Additionally, sort and dist keys can be provided to override the settings from the source table. By default, the backup table is _not_ deleted; to delete the backup table after a successful copy, use `drop_backup` flag.
+
+If `in_place=True`, columns whose encodings differ from the recommended encoding will be directly updated using the `ALTER TABLE {{ table }} ALTER COLUMN {{ column }} ENCODE {{ encoding }}` command. Since this process does not require a deep copy of the target table, subsequent optional arguments are ignored. 
+
+For guidance on if `in_place` is appropriate, consult [the AWS documentation](https://aws.amazon.com/about-aws/whats-new/2020/10/amazon-redshift-supports-modifying-column-comprression-encodings-to-optimize-storage-utilization-query-performance/) and [release announcement](https://aws.amazon.com/about-aws/whats-new/2020/10/amazon-redshift-supports-modifying-column-comprression-encodings-to-optimize-storage-utilization-query-performance/).
 
 Macro signature:
 ```
 {{ compress_table(schema, table,
+                  in_place=False,
                   drop_backup=False,
                   comprows=none|Integer,
                   sort_style=none|compound|interleaved,
diff --git a/macros/compression.sql b/macros/compression.sql
index 53f569f..d52e760 100644
--- a/macros/compression.sql
+++ b/macros/compression.sql
@@ -18,6 +18,9 @@
 
 {% macro build_optimized_definition(definition, recommendation) -%}
 
+    -- tracks which (if any) of the column encodings will change; used when in_place=True to prevent alter_column_encodings() from returning an empty query
+    {% set updated_encodings = {} %}
+
     {% set optimized = {} %}
     {% set _ = optimized.update(definition) %}
     {% for name, column in definition['columns'].items() %}
@@ -25,17 +28,27 @@
 
         {% if recommended_encoding['encoding'] != column['encoding'] %}
             {{ log("    Changing " ~ name ~ ": " ~ column['encoding'] ~ " -> " ~ recommended_encoding['encoding'] ~ " (" ~ recommended_encoding['reduction_pct'] ~ "%)") }}
+            {% set _ = updated_encodings.update({column['name']: recommended_encoding['encoding']}) %}
         {% else %}
             {{ log("Not Changing " ~ name ~ ": " ~ column['encoding']) }}
         {% endif %}
 
         {% set _ = optimized['columns'][name].update({"encoding": recommended_encoding['encoding']}) %}
+
     {% endfor %}
 
-    {{ return(optimized) }}
+    {{ return((optimized, updated_encodings)) }}
 
 {%- endmacro %}
 
+{%- macro alter_column_encodings(schema, table, updated_encodings) -%}
+  
+  {% for column_name, encoding in updated_encodings.items() %}
+      alter table {{ schema }}.{{ table }} alter {{ column_name }} encode {{ encoding }}; 
+  {% endfor %}
+
+{% endmacro %}
+
 {%- macro insert_into_sql(from_schema, from_table, to_schema, to_table) -%}
 
     insert into "{{ to_schema }}"."{{ to_table }}" (
@@ -59,9 +72,9 @@
 
 {%- endmacro -%}
 
-{%- macro compress_table(schema, table, drop_backup=False,
-                         comprows=none, sort_style=none, sort_keys=none,
-                         dist_style=none, dist_key=none) -%}
+{%- macro compress_table(schema, table, in_place=False, 
+                         drop_backup=False, comprows=none, sort_style=none, 
+                         sort_keys=none, dist_style=none, dist_key=none) -%}
 
   {% if not execute %}
     {{ return(none) }}
@@ -74,20 +87,28 @@
     {{ return(none) }}
   {% endif %}
 
-  {% set optimized = redshift.build_optimized_definition(definition, recommendation) %}
+  {% set optimized, updated_encodings = redshift.build_optimized_definition(definition, recommendation) %}
 
-  {% set _ = optimized.update({"keys": optimized.get('keys', {}) | default({})}) %}
-  {% if sort_style %} {% set _ = optimized['keys'].update({"sort_style": sort_style}) %} {% endif %}
-  {% if sort_keys %}  {% set _ = optimized['keys'].update({"sort_keys": sort_keys}) %} {% endif %}
-  {% if dist_style %} {% set _ = optimized['keys'].update({"dist_style": dist_style}) %} {% endif %}
-  {% if dist_key %}   {% set _ = optimized['keys'].update({"dist_key": dist_key}) %} {% endif %}
+  {% if in_place %}
+      -- only alter the column encodings if at least one column will change to avoid returning an empty query
+      {% if updated_encodings %}
+        {{ redshift.alter_column_encodings(schema, table, updated_encodings) }}
+      {% endif %}
+  {% else %}
+    {% set _ = optimized.update({"keys": optimized.get('keys', {}) | default({})}) %}
 
-  {% set new_table = table ~ "__compressed" %}
-  {% set _ = optimized.update({'name': new_table}) %}
+    {% if sort_style %} {% set _ = optimized['keys'].update({"sort_style": sort_style}) %} {% endif %}
+    {% if sort_keys %}  {% set _ = optimized['keys'].update({"sort_keys": sort_keys}) %} {% endif %}
+    {% if dist_style %} {% set _ = optimized['keys'].update({"dist_style": dist_style}) %} {% endif %}
+    {% if dist_key %}   {% set _ = optimized['keys'].update({"dist_key": dist_key}) %} {% endif %}
 
-  {# Build the DDL #}
-  {{ redshift.build_ddl_sql(optimized) }}
-  {{ redshift.insert_into_sql(schema, table, schema, new_table) }}
-  {{ redshift.atomic_swap_sql(schema, table, new_table, drop_backup) }}
+    {% set new_table = table ~ "__compressed" %}
+    {% set _ = optimized.update({'name': new_table}) %}
+
+    {# Build the DDL #}
+    {{ redshift.build_ddl_sql(optimized) }}
+    {{ redshift.insert_into_sql(schema, table, schema, new_table) }}
+    {{ redshift.atomic_swap_sql(schema, table, new_table, drop_backup) }}
+  {% endif %}
 
 {%- endmacro %}