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The ever increasing size of graphs makes them difficult to query and store. In this paper, we present Shrink, a compression method that reduces the size of the graph while preserving the distances between the nodes. The compression is based on the iterative merging of the nodes. During each merging, a system of linear equations is solved to define new edge weights in a way that the new weights have the least effect on the distances. Merging nodes continues until the desired size for the compressed graph is reached. The compressed graph, also known as the coarse graph, can be queried without decompression. As the complexity of distance-based queries such as shortest path queries is highly dependent on the size of the graph, Shrink improves the performance in terms of time and storage. Shrink not only provides the length of the shortest path but also identifies the nodes on the path. The approach has …