In this paper we focus on the process of deep packet inspection of compressed web traffic. The major limiting factor in this process imposed by the compression, is the high memory requirements of 32KB per connection. This leads to the requirements of hundreds of megabytes to gigabytes of main memory on a multi-connection setting. We introduce new algorithms and techniques that drastically reduce this space requirement for such bump-in-the-wire devices like security and other content based networking tools. Our proposed scheme improves both space and time performance by almost 80% and over 40% respectively, thus making real-time compressed traffic inspection a viable option for networking devices.