An apparatus, system, and method are disclosed for selecting a space efficient repository. A cache receives write data. A destage module destages the data sequentially to a coarse grained repository such as a stride level repository and destages a directory entry for the data to a coarse grained directory such as a stride level directory if the data satisfies a repository policy. In addition, the destage module destages the data to a fine grained repository such as a track level repository overwriting an existing data instance and destages the directory entry to a fine grained directory such as a track level directory if the data does not satisfy the repository policy.