Dan Ingalls wrote on 03.11.2003 on Squeak Mailinglist:
This new package consists of the class CompressedSourceStream and two integration methods.
CompressedSourceStream writes '.stc' files as a series of GZipped segments that can be written and read sequentially like regular source files, and yet remain compressed 4x on the disk. Full sources for Squeak 3.6 fit in 3.5MB.
FileDirectory openSources:forImage: has been modified to use compressed sources if found. If you get rid of the .stc file, it reverts to use the normal sources file.
I have tested it in 3.6, and ran it once in 3.3 with no problem. Should work for .changes files too, but I haven't bothered to integrate or test.
This is a hacker-level change but it is very simple to use. I wrote it to support full-source development on, eg, PDAs and Squeak-PCs where file space is at a premium.