diff --git a/README.md b/README.md
index 5b50808e..116750a6 100644
--- a/README.md
+++ b/README.md
@@ -275,3 +275,41 @@ Example data:
 ```
 
 For convenience, data prefixed with `0x` or containing an odd number of characters is supported although it's not part of the standard.
+
+## String enum support
+
+This target can store columns with the json-schema "enum" type as a pg DOMAIN type instead of a TEXT column. This can save space and improve performance.
+
+It is an opt-in feature because it might result in data loss if the actual data does not match the schema's advertised encoding.
+
+Please consider these several downsides to take into consideration before activating this feature:
+- it changes the sort behavior of the resulting column
+- string operations will not be available
+- portability of the data is reduced
+- it is not possible to add remove or modify the enum values
+- enums are not shared accross tables, each column get his own custom type
+
+To enable it, set the `storage_optimized_enum` option to `True`.
+
+Example schema:
+```json
+{
+  "type": "object",
+  "properties": {
+    "my_enum": {
+      "type": "string",
+      "enum": ["foo", "bar", "baz"]
+    }
+  }
+}
+```
+
+Data will be stored as a custom domain type in the database. The domain name will be `enum_<unique_hash>_<column_name>`. The domain will be created in the same schema as the table.
+
+Example generated SQL:
+```sql
+CREATE TYPE enum_123456_my_enum AS ENUM ('foo', 'bar', 'baz');
+CREATE TABLE my_table (
+  my_enum enum_123456_my_enum
+);
+```
diff --git a/target_postgres/connector.py b/target_postgres/connector.py
index 273f777f..b9ec1639 100644
--- a/target_postgres/connector.py
+++ b/target_postgres/connector.py
@@ -105,11 +105,11 @@ def storage_optimized_enum(self) -> bool:
 
         Please consider these several downsides to take into consideration
         before activating:
-        - it changes the sort behavior of the column
+        - it changes the sort behavior of the resulting column
         - string operations will not be available
         - portability of the data is reduced
         - it is not possible to add remove or modify the enum values
-        - enums are shared across all tables in the schema
+        - enums are not shared accross tables, each column get his own custom type
 
         Returns:
             True if the feature is enabled, False otherwise.
@@ -363,7 +363,9 @@ def pick_individual_type(
         ):
             return HexByteString()
         if self.storage_optimized_enum and jsonschema_type.get("enum"):
-            # make sure that the enum name is unique
+            # make sure that the enum name is unique and that the uniqueness part
+            # can be determined using the first 71 characters of the enum name
+            # this is a limitation of postgres type names
             hasher = hashlib.md5(usedforsecurity=False)
             hasher.update(f"{schema_name}__{table_name}__{property_name}".encode())
             hash_str = hasher.hexdigest()
diff --git a/target_postgres/target.py b/target_postgres/target.py
index 8587102d..f497c941 100644
--- a/target_postgres/target.py
+++ b/target_postgres/target.py
@@ -200,6 +200,23 @@ def __init__(
                 "in an error if the data is not encoded as expected."
             ),
         ),
+        th.Property(
+            "storage_optimized_enum",
+            th.BooleanType,
+            default=False,
+            description=(
+                "If set to true, the target will store enum values as a custom pg type "
+                "instead of a text column. This can save space and improve performance,"
+                " but may make the data harder to query and analyze."
+                "Please consider these several downsides to take into consideration "
+                "before activating this feature:"
+                " it changes the sort behavior of the resulting column,"
+                " string operations will not be available,"
+                " portability of the data is reduced,"
+                " it is not possible to add remove or modify the enum values,"
+                " enums are not shared accross tables."
+            ),
+        ),
         th.Property(
             "ssl_enable",
             th.BooleanType,