In many practical situations, e.g., in signal processing, image processing, analysis of temporal data, it is very useful to use fuzzy (F-) transforms. In an F-transform, we first replace a function x(t) by a few local averages (this is called forward F-transform), and then reconstruct the original function from these averages (this is called inverse F-transform). While the formula for the forward F-transform makes perfect intuitive sense, the formula for the inverse F-transform seems, at first glance, somewhat counter-intuitive. On the other hand, its empirical success shows that this formula must have a good justification. In this paper, we provide such a justification -- a justification which is based on formulating a reasonable compression-based criterion.