System and method for tracking changes to files in streaming applications

A technique for modifying virtual files involves tracking changes locally. A method according to the technique may include virtually representing a file on, for example, a streaming client, and writing modifications to the virtual file into a diff-file on the streaming client. A system according the technique may include a virtual file associated with a remotely stored file, a diff-file, stored locally, associated with the remotely stored file, and a diff-file integration engine. The diff-file may include local changes to the virtual file. The diff-file integration engine may be capable of combining the virtual file with the diff-file to create a locally modified virtual file.