A compressor may include a first scroll, a second scroll and a modulation system. The first scroll may include a first endplate and a first spiral wrap. The second scroll may include a second endplate and a second spiral wrap interleaved with the first spiral wrap and cooperating to form a plurality of working fluid pockets therebetween. The modulation system may include a temperature-responsive displacement member that actuates in response to a temperature within a space rising above a predetermined threshold. Actuation of the displacement member may be controlled to control a capacity of the compressor.