diff --git a/compiler/damlc/daml-opts/daml-opts-types/DA/Daml/Options/Types.hs b/compiler/damlc/daml-opts/daml-opts-types/DA/Daml/Options/Types.hs
index 9128379c3f2b..0362f512524e 100644
--- a/compiler/damlc/daml-opts/daml-opts-types/DA/Daml/Options/Types.hs
+++ b/compiler/damlc/daml-opts/daml-opts-types/DA/Daml/Options/Types.hs
@@ -34,6 +34,7 @@ import Control.Monad.Reader
 import DA.Bazel.Runfiles
 import qualified DA.Daml.LF.Ast as LF
 import DA.Pretty
+import qualified DA.Service.Logger as Logger
 import Data.Maybe
 import qualified Data.Text as T
 import Development.IDE.GHC.Util (prettyPrint)
@@ -71,8 +72,8 @@ data Options = Options
     -- ^ number of threads to use
   , optDamlLfVersion :: LF.Version
     -- ^ The target Daml-LF version
-  , optDebug :: Bool
-    -- ^ Whether to enable debugging output
+  , optLogLevel :: Logger.Priority
+    -- ^ Min log level that we display
   , optGhcCustomOpts :: [String]
     -- ^ custom options, parsed by GHC option parser, overriding DynFlags
   , optScenarioService :: EnableScenarioService
@@ -186,7 +187,7 @@ defaultOptions mbVersion =
         , optShakeProfiling = Nothing
         , optThreads = 1
         , optDamlLfVersion = fromMaybe LF.versionDefault mbVersion
-        , optDebug = False
+        , optLogLevel = Logger.Info
         , optGhcCustomOpts = []
         , optScenarioService = EnableScenarioService True
         , optEnableScripts = EnableScripts False
diff --git a/compiler/damlc/lib/DA/Cli/Damlc/Base.hs b/compiler/damlc/lib/DA/Cli/Damlc/Base.hs
index 87a499e4761c..3b3db723548c 100644
--- a/compiler/damlc/lib/DA/Cli/Damlc/Base.hs
+++ b/compiler/damlc/lib/DA/Cli/Damlc/Base.hs
@@ -15,7 +15,4 @@ import qualified DA.Service.Logger                 as Logger
 import qualified DA.Service.Logger.Impl.IO         as Logger.IO
 
 getLogger :: Options -> T.Text -> IO (Logger.Handle IO)
-getLogger Options {optDebug} name =
-    if optDebug
-        then Logger.IO.newStderrLogger Logger.Debug name
-        else Logger.IO.newStderrLogger Logger.Info name
+getLogger Options {optLogLevel} name = Logger.IO.newStderrLogger optLogLevel name
diff --git a/compiler/damlc/lib/DA/Cli/Options.hs b/compiler/damlc/lib/DA/Cli/Options.hs
index 81fcec5a295e..092fec2be36e 100644
--- a/compiler/damlc/lib/DA/Cli/Options.hs
+++ b/compiler/damlc/lib/DA/Cli/Options.hs
@@ -5,7 +5,7 @@ module DA.Cli.Options
   ( module DA.Cli.Options
   ) where
 
-import Data.List.Extra     (trim, splitOn)
+import Data.List.Extra     (lower, splitOn, trim)
 import Options.Applicative.Extended
 import Safe (lastMay)
 import Data.List
@@ -16,6 +16,7 @@ import DA.Daml.LF.Ast.Util (splitUnitId)
 import qualified DA.Daml.LF.Ast.Version as LF
 import DA.Daml.Project.Consts
 import DA.Daml.Project.Types
+import qualified DA.Service.Logger as Logger
 import qualified Module as GHC
 import qualified Text.ParserCombinators.ReadP as R
 
@@ -238,8 +239,20 @@ dlintUsageOpt = fmap (fromMaybe DlintDisabled . lastMay) $
   many (dlintEnabledOpt <|> dlintDisabledOpt)
 
 
-optDebugLog :: Parser Bool
-optDebugLog = switch $ help "Enable debug output" <> long "debug"
+cliOptLogLevel :: Parser Logger.Priority
+cliOptLogLevel =
+    flag' Logger.Debug (long "debug" <> help "Set log level to DEBUG") <|>
+    option readLogLevel (long "log-level" <> help "Set log level. Possible values are DEBUG, INFO, WARNING, ERROR" <> value Logger.Info)
+  where
+    readLogLevel = maybeReader $ \s -> case lower s of
+        -- we support telemetry log-level for debugging purposes.
+        "telemetry" -> Just Logger.Telemetry
+        "debug" -> Just Logger.Debug
+        "info" -> Just Logger.Info
+        "warning" -> Just Logger.Warning
+        "error" -> Just Logger.Error
+        _ -> Nothing
+
 
 optPackageName :: Parser (Maybe GHC.UnitId)
 optPackageName = optional $ fmap GHC.stringToUnitId $ strOption $
@@ -266,7 +279,7 @@ optionsParser numProcessors enableScenarioService parsePkgName = do
     optShakeProfiling <- shakeProfilingOpt
     optThreads <- optShakeThreads
     optDamlLfVersion <- lfVersionOpt
-    optDebug <- optDebugLog
+    optLogLevel <- cliOptLogLevel
     optGhcCustomOpts <- optGhcCustomOptions
     let optScenarioService = enableScenarioService
     let optSkipScenarioValidation = SkipScenarioValidation False
diff --git a/daml-script/daml/BUILD.bazel b/daml-script/daml/BUILD.bazel
index c386787311ed..327de750f16c 100644
--- a/daml-script/daml/BUILD.bazel
+++ b/daml-script/daml/BUILD.bazel
@@ -35,6 +35,7 @@ EOF
             build_options = str([
                 "--ghc-option",
                 "-Werror",
+                "--log-level=WARNING",
             ] + [
                 "--target",
                 lf_version,
diff --git a/rules_daml/daml.bzl b/rules_daml/daml.bzl
index 93c01e4e4283..f0cbb7e5676d 100644
--- a/rules_daml/daml.bzl
+++ b/rules_daml/daml.bzl
@@ -24,8 +24,7 @@ def _daml_configure_impl(ctx):
     project_version = ctx.attr.project_version
     daml_yaml = ctx.outputs.daml_yaml
     target = ctx.attr.target
-    ghc_opts = ctx.attr.ghc_options
-    opts = ghc_opts + ["--target={}".format(target)] if target else ghc_opts
+    opts = ["--target={}".format(target)] if target else []
     ctx.actions.write(
         output = daml_yaml,
         content = """
@@ -61,10 +60,6 @@ _daml_configure = rule(
         "target": attr.string(
             doc = "DAML-LF version to output.",
         ),
-        "ghc_options": attr.string_list(
-            doc = "Options passed to GHC.",
-            default = ["--ghc-option=-Werror"],
-        ),
     },
 )
 
@@ -152,7 +147,7 @@ _daml_build = rule(
         ),
         "ghc_options": attr.string_list(
             doc = "Options passed to GHC.",
-            default = ["--ghc-option=-Werror"],
+            default = ["--ghc-option=-Werror", "--ghc-option=-Wwarn", "--log-level=WARNING"],
         ),
         "_damlc": _damlc,
     },
@@ -172,7 +167,7 @@ def _extract_main_dalf_impl(ctx):
         outputs = [output_dalf],
         progress_message = "Extract DALF from DAR (%s)" % project_name,
         command = """
-set -eoux pipefail
+set -eou pipefail
 TMPDIR=$(mktemp -d)
 trap "rm -rf $TMPDIR" EXIT
 # While zipper has a -d option, it insists on it
@@ -252,12 +247,15 @@ def _inspect_dar(base):
 
 _default_project_version = "1.0.0"
 
+default_damlc_opts = ["--ghc-option=-Werror", "--ghc-option=-Wwarn", "--log-level=WARNING"]
+
 def daml_compile(
         name,
         srcs,
         version = _default_project_version,
         target = None,
         project_name = None,
+        ghc_options = default_damlc_opts,
         **kwargs):
     "Build a DAML project, with a generated daml.yaml."
     if len(srcs) == 0:
@@ -277,6 +275,7 @@ def daml_compile(
         srcs = srcs,
         dar_dict = {},
         dar = name + ".dar",
+        ghc_options = ghc_options,
         **kwargs
     )
     _inspect_dar(
@@ -308,6 +307,7 @@ def daml_build_test(
         daml_subdir_basename = "daml",
         daml_yaml = None,
         dar_dict = {},
+        ghc_options = default_damlc_opts,
         **kwargs):
     "Build a DAML project and validate the resulting .dar file."
     if not daml_yaml:
@@ -319,6 +319,7 @@ def daml_build_test(
         srcs = srcs,
         dar_dict = dar_dict,
         dar = name + ".dar",
+        ghc_options = ghc_options,
         **kwargs
     )
     _daml_validate_test(
@@ -338,7 +339,7 @@ def daml_test(
         name = name,
         data = [damlc] + srcs + deps + data_deps,
         cmd = """\
-set -eoux pipefail
+set -eou pipefail
 tmpdir=$$(mktemp -d)
 trap "rm -rf $$tmpdir" EXIT
 DAMLC=$$(canonicalize_rlocation $(rootpath {damlc}))
diff --git a/triggers/daml/BUILD.bazel b/triggers/daml/BUILD.bazel
index 6f8d084afe52..b5e5c63ff603 100644
--- a/triggers/daml/BUILD.bazel
+++ b/triggers/daml/BUILD.bazel
@@ -34,7 +34,7 @@ dependencies:
   - daml-script.dar
 build-options: {build_options}
 EOF
-          $(location //compiler/damlc) build --project-root $$TMP_DIR --ghc-option=-Werror \
+          $(location //compiler/damlc) build --project-root $$TMP_DIR --ghc-option=-Werror --log-level=WARNING \
               -o $$PWD/$@
           rm -rf $$TMP_DIR
         """.format(