This paper develops a way to represent a chaotic system through transitions between regions of its state space. Time-series data define a finite-volume approximation of the equation governing probability, producing a continuous-time Markov model. The method accommodates flexible partitions, noisy observations, and uncertainty caused by finite data. The Lorenz equations provide a worked example of recovering statistical behavior without trying to track an individual chaotic trajectory indefinitely. Readers get the mathematical construction and practical methodology behind a statistical reduced-order model, with the companion paper extending it to atmospheric flow.