For text retrieval systems, the assumption that all data structures reside in main memory is increasingly common. In this context, we present a novel incremental inverted indexing algorithm for web-scale collections that directly constructs compressed postings lists in memory. Designing efficient in-memory algorithms requires understanding modern processor architectures and memory hierarchies: in this paper, we explore the issue of postings lists contiguity. Naturally, postings lists that occupy contiguous memory regions are preferred for retrieval, but maintaining contiguity increases complexity and slows indexing. On the other hand, allowing discontiguous index segments simplifies index construction but decreases retrieval performance. Understanding this tradeoff is our main contribution: We find that co-locating small groups of inverted list segments yields query evaluation performance that is statistically indistinguishable from fully-contiguous postings lists. In other words, it is not necessary to lay out in-memory data structures such that all postings for a term are contiguous; we can achieve ideal performance with a relatively small amount of effort.