diff --git a/data/input/user-rules.txt b/data/input/user-rules.txt
new file mode 100644
index 0000000..3c63553
--- /dev/null
+++ b/data/input/user-rules.txt
@@ -0,0 +1,5 @@
+! Title: Custom User Rules
+! Description: Personal ad-blocking rules
+! Last modified: 2024-01-01
+||example-ads.com^
+||tracking.example.net^
diff --git a/src/rules-compiler-typescript/compiler-config.json b/src/rules-compiler-typescript/compiler-config.json
index 49f5163..1434698 100644
--- a/src/rules-compiler-typescript/compiler-config.json
+++ b/src/rules-compiler-typescript/compiler-config.json
@@ -16,14 +16,8 @@
   "sources": [
     {
       "name": "User Rules",
-      "type": "inline",
-      "content": [
-        "! Title: Custom User Rules",
-        "! Description: Personal ad-blocking rules",
-        "! Last modified: 2024-01-01",
-        "||example-ads.com^",
-        "||tracking.example.net^"
-      ]
+      "source": "data/input/user-rules.txt",
+      "type": "adblock"
     }
   ],
   "transformations": [
diff --git a/src/rules-compiler-typescript/src/validation.test.ts b/src/rules-compiler-typescript/src/validation.test.ts
index 99410e6..00cf9af 100644
--- a/src/rules-compiler-typescript/src/validation.test.ts
+++ b/src/rules-compiler-typescript/src/validation.test.ts
@@ -99,7 +99,7 @@ Deno.test('validateConfiguration - validates source objects', () => {
   const result = validateConfiguration(config);
 
   assertEquals(result.valid, false);
-  assertEquals(result.errors.some((e) => e.includes('sources[0]') && (e.includes('source') || e.includes('content'))), true);
+  assertEquals(result.errors.some((e) => e.includes('sources[0]') && e.includes('source')), true);
 });
 
 Deno.test('validateConfiguration - validates source type values', () => {
diff --git a/src/rules-compiler-typescript/src/validation.ts b/src/rules-compiler-typescript/src/validation.ts
index 87f2894..5103254 100644
--- a/src/rules-compiler-typescript/src/validation.ts
+++ b/src/rules-compiler-typescript/src/validation.ts
@@ -63,42 +63,21 @@ function validateSource(source: unknown, index: number): string[] {
 
   const sourceObj = source as Record<string, unknown>;
 
-  // Either 'source' or 'content' field is required
-  const hasSource = sourceObj['source'] && typeof sourceObj['source'] === 'string';
-  const hasContent = sourceObj['content'] && Array.isArray(sourceObj['content']);
-
-  if (!hasSource && !hasContent) {
-    errors.push(`${prefix}: must have either 'source' (URL/path) or 'content' (inline rules) field`);
-  }
-
-  // Validate source field if present
-  if (sourceObj['source'] !== undefined) {
-    if (typeof sourceObj['source'] !== 'string') {
-      errors.push(`${prefix}.source: must be a string`);
-    } else if (sourceObj['source'].trim() === '') {
-      errors.push(`${prefix}.source: cannot be empty`);
-    }
-  }
-
-  // Validate content field if present
-  if (sourceObj['content'] !== undefined) {
-    if (!Array.isArray(sourceObj['content'])) {
-      errors.push(`${prefix}.content: must be an array`);
-    } else {
-      for (let i = 0; i < sourceObj['content'].length; i++) {
-        if (typeof sourceObj['content'][i] !== 'string') {
-          errors.push(`${prefix}.content[${i}]: must be a string`);
-        }
-      }
-    }
+  // Required field: 'source' (path or URL)
+  if (!sourceObj['source']) {
+    errors.push(`${prefix}: must have 'source' field (URL or file path)`);
+  } else if (typeof sourceObj['source'] !== 'string') {
+    errors.push(`${prefix}.source: must be a string`);
+  } else if (sourceObj['source'].trim() === '') {
+    errors.push(`${prefix}.source: cannot be empty`);
   }
 
-  // type validation if present
+  // type validation if present - only 'adblock' or 'hosts' allowed per upstream schema
   if (sourceObj['type'] !== undefined) {
     if (typeof sourceObj['type'] !== 'string') {
       errors.push(`${prefix}.type: must be a string`);
-    } else if (!['adblock', 'hosts', 'inline'].includes(sourceObj['type'])) {
-      errors.push(`${prefix}.type: must be 'adblock', 'hosts', or 'inline'`);
+    } else if (!['adblock', 'hosts'].includes(sourceObj['type'])) {
+      errors.push(`${prefix}.type: must be 'adblock' or 'hosts'`);
     }
   }