diff --git a/direct/src/dcparser/dcAtomicField.cxx b/direct/src/dcparser/dcAtomicField.cxx
index bc3108a32d..02ed98eaec 100644
--- a/direct/src/dcparser/dcAtomicField.cxx
+++ b/direct/src/dcparser/dcAtomicField.cxx
@@ -564,17 +564,6 @@ is_ownsend() const {
   return (_flags & F_ownsend) != 0;
 }
 
-////////////////////////////////////////////////////////////////////
-//     Function: DCAtomicField::is_compress
-//       Access: Public
-//  Description: Returns true if the "compress" flag is set for this
-//               field, false otherwise.
-////////////////////////////////////////////////////////////////////
-bool DCAtomicField::
-is_compress() const {
-  return (_flags & F_compress) != 0;
-}
-
 ////////////////////////////////////////////////////////////////////
 //     Function: DCAtomicField::Constructor
 //       Access: Public
@@ -632,9 +621,6 @@ write(ostream &out, int indent_level) const {
   if ((_flags & F_ownsend) != 0) {
     out << " ownsend";
   }
-  if ((_flags & F_compress) != 0) {
-    out << " compress";
-  }
 
   out << ";  // field " << _number << "\n";
 }
diff --git a/direct/src/dcparser/dcAtomicField.h b/direct/src/dcparser/dcAtomicField.h
index 7c366e6b9b..8498caf806 100644
--- a/direct/src/dcparser/dcAtomicField.h
+++ b/direct/src/dcparser/dcAtomicField.h
@@ -53,7 +53,6 @@ PUBLISHED:
   bool is_clsend() const;
   bool is_clrecv() const;
   bool is_ownsend() const;
-  bool is_compress() const;
 
 public:
   DCAtomicField();
@@ -98,7 +97,6 @@ public:
     F_clsend          = 0x0020,
     F_clrecv          = 0x0040,
     F_ownsend         = 0x0080,
-    F_compress        = 0x0100,
   };
 
   int _flags;  // A bitmask union of any of the above values.
diff --git a/direct/src/dcparser/dcLexer.lxx b/direct/src/dcparser/dcLexer.lxx
index adb8ccb1fb..4fdab47709 100644
--- a/direct/src/dcparser/dcLexer.lxx
+++ b/direct/src/dcparser/dcLexer.lxx
@@ -471,11 +471,6 @@ mol[0-9]+ {
   return KW_OWNSEND;
 }
 
-"compress" {
-  accept();
-  return KW_COMPRESS;
-}
-
 {INTEGERNUM} { 
   // An integer number.
   accept(); 
diff --git a/direct/src/dcparser/dcParser.yxx b/direct/src/dcparser/dcParser.yxx
index 84ddcf98ae..5dd4fb8fa7 100644
--- a/direct/src/dcparser/dcParser.yxx
+++ b/direct/src/dcparser/dcParser.yxx
@@ -77,7 +77,6 @@ dc_cleanup_parser() {
 %token KW_CLSEND
 %token KW_CLRECV
 %token KW_OWNSEND
-%token KW_COMPRESS
 
 %type <u.dclass> dclass_name
 %type <u.atomic> atomic_name
@@ -415,10 +414,6 @@ atomic_flags:
         | atomic_flags KW_OWNSEND
 {
   current_atomic->_flags |= DCAtomicField::F_ownsend;
-}
-        | atomic_flags KW_COMPRESS
-{
-  current_atomic->_flags |= DCAtomicField::F_compress;
 }
         ;
 
diff --git a/direct/src/distributed/ClientDistClass.py b/direct/src/distributed/ClientDistClass.py
index 1af5c45adc..7f00a58ad7 100644
--- a/direct/src/distributed/ClientDistClass.py
+++ b/direct/src/distributed/ClientDistClass.py
@@ -62,14 +62,14 @@ class ClientDistClass:
                     requiredCDU.append(i)
         return requiredCDU
 
-    def updateField(self, do, di, allowCompress):
+    def updateField(self, do, di):
         # Get the update field id
         fieldId = di.getArg(STUint16)
         # look up the CDU
         assert(self.number2CDU.has_key(fieldId))
         cdu = self.number2CDU[fieldId]
         # Let the cdu finish the job
-        cdu.updateField(self, do, di, allowCompress)
+        cdu.updateField(self, do, di)
         return None
 
     def sendUpdate(self, cr, do, fieldName, args, sendToId = None):
diff --git a/direct/src/distributed/ClientDistUpdate.py b/direct/src/distributed/ClientDistUpdate.py
index 0185e41853..9a82ffd4d3 100644
--- a/direct/src/distributed/ClientDistUpdate.py
+++ b/direct/src/distributed/ClientDistUpdate.py
@@ -20,7 +20,6 @@ class ClientDistUpdate:
         self.name = dcField.getName()
         self.types = []
         self.divisors = []
-        self.compress = 0
         self.deriveTypesFromParticle(dcField)
         # Figure out our function pointer
         exec("import " + cdc.name, moduleGlobals, moduleLocals)
@@ -41,24 +40,19 @@ class ClientDistUpdate:
             for i in range(0, dcFieldAtomic.getNumElements()):
                 self.types.append(dcFieldAtomic.getElementType(i))
                 self.divisors.append(dcFieldAtomic.getElementDivisor(i))
-            if dcFieldAtomic.isCompress():
-                self.compress = 1
-                
         elif dcFieldMolecular:
             for i in range(0, dcFieldMolecular.getNumAtomics()):
                 componentField = dcFieldMolecular.getAtomic(i)
                 for j in range(0, componentField.getNumElements()):
                     self.types.append(componentField.getElementType(j))
                     self.divisors.append(componentField.getElementDivisor(j))
-                if componentField.isCompress():
-                    self.compress = 1
         else:
             ClientDistUpdate.notify.error("field is neither atom nor molecule")
         return None
 
-    def updateField(self, cdc, do, di, allowCompress):
+    def updateField(self, cdc, do, di):
         # Get the arguments into a list
-        args = self.extractArgs(di, allowCompress)
+        args = self.extractArgs(di)
 
         assert(self.notify.debug("Received update for %d: %s.%s(%s)" % (do.doId, cdc.name, self.name, args)))
 
@@ -67,13 +61,7 @@ class ClientDistUpdate:
             apply(self.func, [do] + args)
         return None
 
-    def extractArgs(self, di, allowCompress):
-        if allowCompress and self.compress:
-            # Technically, the datagram pointer is const, so this is
-            # invalid.  Ignore that for now.
-            argsAt = di.getCurrentIndex()
-            di.getDatagram().uncompress(argsAt)
-
+    def extractArgs(self, di):
         args = []
         assert(len(self.types) == len(self.divisors))
         numTypes = len(self.types)
@@ -100,10 +88,7 @@ class ClientDistUpdate:
         datagram.addUint32(sendToId)
         # Add the field id
         datagram.addUint16(self.number)
-        argsAt = datagram.getLength()
         # Add the arguments
         self.addArgs(datagram, args)
-        if self.compress:
-            datagram.compress(argsAt)
         # send the datagram
         cr.send(datagram)
diff --git a/direct/src/distributed/ClientRepository.py b/direct/src/distributed/ClientRepository.py
index 4ac255074e..ffa512ff30 100644
--- a/direct/src/distributed/ClientRepository.py
+++ b/direct/src/distributed/ClientRepository.py
@@ -517,7 +517,7 @@ class ClientRepository(DirectObject.DirectObject):
         cdc = self.doId2cdc.get(doId)
         if (do != None and cdc != None):
             # Let the cdc finish the job
-            cdc.updateField(do, di, 1)
+            cdc.updateField(do, di)
         else:
             ClientRepository.notify.warning(
                 "Asked to update non-existent DistObj " + str(doId))
diff --git a/direct/src/distributed/DistributedObject.py b/direct/src/distributed/DistributedObject.py
index 7792999377..5e4ce86761 100644
--- a/direct/src/distributed/DistributedObject.py
+++ b/direct/src/distributed/DistributedObject.py
@@ -182,21 +182,21 @@ class DistributedObject(PandaObject):
     
     def updateRequiredFields(self, cdc, di):
         for i in cdc.broadcastRequiredCDU:
-            i.updateField(cdc, self, di, 0)
+            i.updateField(cdc, self, di)
     
     def updateAllRequiredFields(self, cdc, di):
         for i in cdc.allRequiredCDU:
-            i.updateField(cdc, self, di, 0)
+            i.updateField(cdc, self, di)
 
     def updateRequiredOtherFields(self, cdc, di):
         # First, update the required fields
         for i in cdc.broadcastRequiredCDU:
-            i.updateField(cdc, self, di, 0)
+            i.updateField(cdc, self, di)
         # Determine how many other fields there are
         numberOfOtherFields = di.getArg(STUint16)
         # Update each of the other fields
         for i in range(numberOfOtherFields):
-            cdc.updateField(self, di, 0)
+            cdc.updateField(self, di)
         return None
 
     def sendUpdate(self, fieldName, args = [], sendToId = None):
diff --git a/panda/src/express/datagram.cxx b/panda/src/express/datagram.cxx
index b454546028..dcdef7c44b 100644
--- a/panda/src/express/datagram.cxx
+++ b/panda/src/express/datagram.cxx
@@ -154,41 +154,3 @@ append_data(const void *data, size_t size) {
     _data.v().push_back(source[i]);
   }
 }
-
-////////////////////////////////////////////////////////////////////
-//     Function: Datagram::compress
-//       Access: Public
-//  Description: Performs a simple bit-compression on the data stored
-//               within the datagram.  Data before from_byte will be
-//               unaffected.  This will be exactly reversed by a later
-//               call to uncompress(), but you must be careful to call
-//               each function exactly once.
-////////////////////////////////////////////////////////////////////
-void Datagram::
-compress(size_t from_byte) {
-  // For now, we don't actually compress the data, but just trivially
-  // encode it.
- 
-  char *message = (char *)get_data();
-  size_t num_bytes = get_length();
-  for (size_t i = from_byte; i < num_bytes; i++) {
-    message[i] ^= 0x55;
-  }
-}
-
-////////////////////////////////////////////////////////////////////
-//     Function: Datagram::uncompress
-//       Access: Public
-//  Description: Reverses the effect of a previous call to compress().
-////////////////////////////////////////////////////////////////////
-void Datagram::
-uncompress(size_t from_byte) {
-  // For now, we don't actually compress the data, but just trivially
-  // encode it.
- 
-  char *message = (char *)get_data();
-  size_t num_bytes = get_length();
-  for (size_t i = from_byte; i < num_bytes; i++) {
-    message[i] ^= 0x55;
-  }
-}
diff --git a/panda/src/express/datagram.h b/panda/src/express/datagram.h
index d595f2986d..d5ae2b7848 100644
--- a/panda/src/express/datagram.h
+++ b/panda/src/express/datagram.h
@@ -93,9 +93,6 @@ PUBLISHED:
   INLINE const void *get_data() const;
   INLINE size_t get_length() const;
 
-  void compress(size_t from_byte);
-  void uncompress(size_t from_byte);
-
   INLINE bool operator == (const Datagram &other) const;
   INLINE bool operator != (const Datagram &other) const;
   INLINE bool operator < (const Datagram &other) const;