I am looking for a freeware Windows tool that provides on-the-fly compressed virtual drives stored in files (similar to TrueCrypt disks).

The virtual drive should offer random access and should be writable, so Prismo CFS is not an option.

I've tried WIM images in the past but they require a lot of free memory to mount and update.

  • Would a container that supports NTFS and then use ntfs compression one the file work? – cybernard Jun 22 '18 at 22:29
  • I've considered NTFS compression as well, but it causes a lot of fragmentation and it is not usable on optical disks for backups. – eadmaster Jun 25 '18 at 9:29
  • I was thinking a VHD file with NTFS compression on the inside. – cybernard Jun 25 '18 at 11:40

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