A key component of research on human sentence processing is to characterize the processing difficulty associated with the comprehension of words in context. Models that explain and predict this difficulty can be broadly divided into two kinds, expectation-based and memory-based. In this work, we present a new model of incremental sentence processing difficulty that unifies and extends key features of both kinds of models. Our model, "lossy-context surprisal", holds that the processing difficulty at a word in context is proportional to the surprisal of the word given a "lossy memory representation" of the context--that is, a memory representation that does not contain complete information about previous words. We show that this model provides an intuitive explanation for an outstanding puzzle involving interactions of memory and expectations: language-dependent structural forgetting, where the effects of memory on sentence processing appear to be moderated by language statistics. Furthermore, we demonstrate that dependency locality effects, a signature prediction of memory-based theories, can be derived from lossy-context surprisal as a special case of a novel, more general principle called information locality.