Automatic memory management is one of the most significant features of a Lisp system. Whenever an object, such as a cons cell, is required to hold an aggregate of values, the system calls the appropriate function to create a new object and fill it with the intended values. The programmer need not be concerned with the low level allocation and management of memory as the Lisp system provides this functionality automatically.
When an object is no longer required (that is, it has become "garbage"), the system must automatically reclaim ("collect") the space it occupies and reallocate the space to a new object. Whenever the space for new objects is exhausted, a "garbage collector" is run to determine (by a process of elimination) all the existing objects that are still required by the running program. Any other objects still in the image are necessarily garbage, and the space they occupy can be reclaimed.
For a description of how LispWorks uses the address space of different Operating Systems, and factors affecting the maximum image size, see Address Space and Image Size.
Garbage collection with a naive algorithm is extremely inefficient. The time required to scan an entire image, which may occupy many megabytes of memory, is prohibitive; especially when the collector must perform the scan in a small, fixed, workspace.