1. An image processing system comprising: an input circuit that receives image data and corresponding depth data, wherein the image data defines luminance and/or color for image locations, and wherein the depth data defines distances to objects at the image locations; a dilator circuit that receives the depth data from the input circuit, wherein the dilator circuit identifies a depth edge between a first region of a first depth and a second region of a second depth, wherein the second depth is significantly larger than the first depth, and wherein the dilator circuit creates dilated depth data by shifting the depth edge into the second region so that the image data on both sides of the depth edge corresponds to image data at the second depth; and a compressor circuit that receives the image data from the input circuit and the dilated depth data from the dilator circuit and creates therefrom compressed image data and compressed dilated depth data.