Context based entropy coding has the potential to provide higher gain over memoryless entropy coding. However serious difficulties arise regarding the practical implementation in real-time applications due to its very high memory requirements. This paper presents an efficient method for designing context adaptive entropy coding while fulfilling low memory requirements. From a study of coding gain scalability as a function of context size, new context design and validation procedures are derived. Further, supervised clustering and mapping optimization are introduced to model efficiently the context. The resulting context modelling associated with an arithmetic coder was successfully implemented in a transform-based audio coder for real-time processing. It shows significant improvement over the entropy coding used in MPEG-4 AAC.