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I have certain documents stored on a password protected disk image stored on Dropbox. Since the documents are small text documents, I made the image small (100 MB). But now I'm getting the following message when I save a document:

The document “foo.tex” is on a volume that is too small to support permanent version storage.

You will not be able to access older versions of this document once you close it.

I have another 2 GB image which doesn't give rise to this warning. So my question is, what's the minimum volume size I should use to avoid this warning?

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    I have this question too. Nobody? – Jeff H. Nov 4 '16 at 17:35
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For others looking for an answer, it's 600 MB or larger (599 fails, 600 succeeds). Using a sparse disk helps save space from using a "too large" volume, FWIW.

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