The discrete wavelet transform (DWT) represents images as a sum of wavelet functions (wavelets) on different resolution levels. The basis for the wavelet transform can be composed of any function that satisfies requirements of multiresolution analysis. It means that there exists a large selection of wavelet families depending on the choice of wavelet function. The choice of wavelet family depends on the application. In image compression application this choice depends on image content. This paper provides fundamentals of wavelet based image compression. The options for wavelet image representations are tested. The results of image quality measurements for different wavelet functions, image contents, compression ratios and resolutions are given.