In this paper, we propose a new image compression scheme that is based on the wavelet transform. The image is first divided into 64 × 64 pixels block. The progressive pixel-to-pixel evaluation is done to find the individual pixel intensity in each block. Then the different value between the maximum pixel intensity value and the minimum pixel intensity value is calculated. This value will lead to a special representation of each where the block with high difference value is set as the hard region block while the block with low difference value is set as the smooth region block. This region will be decomposed individually using Discrete Wavelet Transform (DWT) and thresholded using different threshold method based on the block characteristic. The proposed method shows compression did well on image with a large smooth area.