Abstract. We present an algorithm that computes the Lempel-Ziv decomposition in O(n(log σ + log log n)) time and n log σ + ǫn bits of space, where ǫ is a constant rational parameter, n is the length of the input string, and σ is the alphabet size. The n log σ bits in the space bound are for the input string itself which is treated as read-only.