diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index f1c3f59d2e3..65b75304619 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -22,6 +22,11 @@ v0.15.0 (unreleased)
 Breaking changes
 ~~~~~~~~~~~~~~~~
 
+- Remove ``compat`` and ``encoding`` kwargs from ``DataArray``, which
+  have been deprecated since 0.12. (:pull:`3650`). 
+  Instead, specify the encoding when writing to disk or set 
+  the ``encoding`` attribute directly.
+  By `Maximilian Roos <https://github.com/max-sixty>`_
 
 New Features
 ~~~~~~~~~~~~
diff --git a/xarray/core/dataarray.py b/xarray/core/dataarray.py
index 36452db8b7b..482f5ea6c1a 100644
--- a/xarray/core/dataarray.py
+++ b/xarray/core/dataarray.py
@@ -279,8 +279,6 @@ def __init__(
         dims: Union[Hashable, Sequence[Hashable], None] = None,
         name: Hashable = None,
         attrs: Mapping = None,
-        # deprecated parameters
-        encoding=None,
         # internal parameters
         indexes: Dict[Hashable, pd.Index] = None,
         fastpath: bool = False,
@@ -325,20 +323,10 @@ def __init__(
             Attributes to assign to the new instance. By default, an empty
             attribute dictionary is initialized.
         """
-        if encoding is not None:
-            warnings.warn(
-                "The `encoding` argument to `DataArray` is deprecated, and . "
-                "will be removed in 0.15. "
-                "Instead, specify the encoding when writing to disk or "
-                "set the `encoding` attribute directly.",
-                FutureWarning,
-                stacklevel=2,
-            )
         if fastpath:
             variable = data
             assert dims is None
             assert attrs is None
-            assert encoding is None
         else:
             # try to fill in arguments from data if they weren't supplied
             if coords is None:
@@ -360,13 +348,11 @@ def __init__(
                 name = getattr(data, "name", None)
             if attrs is None and not isinstance(data, PANDAS_TYPES):
                 attrs = getattr(data, "attrs", None)
-            if encoding is None:
-                encoding = getattr(data, "encoding", None)
 
             data = _check_data_shape(data, coords, dims)
             data = as_compatible_data(data)
             coords, dims = _infer_coords_and_dims(data.shape, coords, dims)
-            variable = Variable(dims, data, attrs, encoding, fastpath=True)
+            variable = Variable(dims, data, attrs, fastpath=True)
             indexes = dict(
                 _extract_indexes_from_coords(coords)
             )  # needed for to_dataset
diff --git a/xarray/core/dataset.py b/xarray/core/dataset.py
index 089cda06b0d..a8c6e949e35 100644
--- a/xarray/core/dataset.py
+++ b/xarray/core/dataset.py
@@ -78,8 +78,8 @@
     Default,
     Frozen,
     SortedKeysDict,
-    _default,
     _check_inplace,
+    _default,
     decode_numpy_dict_values,
     either_dict_or_kwargs,
     hashable,
@@ -457,7 +457,6 @@ def __init__(
         data_vars: Mapping[Hashable, Any] = None,
         coords: Mapping[Hashable, Any] = None,
         attrs: Mapping[Hashable, Any] = None,
-        compat=None,
     ):
         """To load data from a file or file-like object, use the `open_dataset`
         function.
@@ -507,18 +506,7 @@ def __init__(
 
         attrs : dict-like, optional
             Global attributes to save on this dataset.
-        compat : deprecated
         """
-        if compat is not None:
-            warnings.warn(
-                "The `compat` argument to Dataset is deprecated and will be "
-                "removed in 0.15."
-                "Instead, use `merge` to control how variables are combined",
-                FutureWarning,
-                stacklevel=2,
-            )
-        else:
-            compat = "broadcast_equals"
 
         # TODO(shoyer): expose indexes as a public argument in __init__
 
@@ -538,7 +526,7 @@ def __init__(
             coords = coords.variables
 
         variables, coord_names, dims, indexes = merge_data_and_coords(
-            data_vars, coords, compat=compat
+            data_vars, coords, compat="broadcast_equals"
         )
 
         self._attrs = dict(attrs) if attrs is not None else None