We initiate a resource-aware theory of \textit{language generation in the limit} under the minimal constraint of space efficiency. In our framework, a learner observes an adversarial positive stream from a target language
K and must eventually output a hallucination-free hypothesis language
L⊆K while omitting at most
Δ strings of
K. We focus on
Cs,k, the collection of languages recognized by DFAs with at most
s states over an alphabet of size
k, as the natural hypothesis class for memory-bounded learners. In the exponential-space regime, we prove that a learner can exactly identify the target
K. Under a stricter memory budget, we characterize the strongest possible generation guarantees. In particular, we present a streaming algorithm using
poly(s,k) space that converges to a hypothesis with generation gap
Δ=O(k2s−2). Moreover, the learned hypothesis captures every string in
K of length at least
2s−1. We complement this result with a near-matching lower bound through a reduction from a standard communication complexity problem. Specifically, achieving generation gap
Δ≤k(1−ε)s requires
kΩ(εs) memory. Together, these results reveal a sharp transition between polynomial-space generation and exponential-space exact identification.