The compact hydraulic steering system with a monitor and compensation device, abbreviated CHS-Z, directs a hydraulic actuator within the inner wheel by means of a hydraulic actuator at the handlebars or steer. The compact steering house (2) is situated centrally in the wheel hub (1) around which the wheel spins or on which the wheel is attached. A hydraulic actuator, being a rotary or piston actuator, within the steering house (2) ensures the rotation of the steering axle (3) and the wheel hub (1) to which it is connected. The steering angle of the wheel and the handlebars or steer are kept synchronous by a monitor and compensation device. This steering system distinguishes itself from the traditional steering devices through it extremely compact build inside the wheel hub (1) and the absence of a mechanical connection between the wheel(s) that need to be directed and the handlebars or steer. It offers the constructor a safe and reliable steering system on top of a significant freedom in the design of the wheel suspension.