A method and system of transmitting a set of wavelet coefficients, the wavelet coefficients representing an image, comprising: arranging a set of wavelet coefficients into a spatially-oriented tree data structure of groups of wavelet coefficients, determining group significance levels for groups in the tree; computing encoded data associated with a refinement range, the refinement range describing a selection from the group consisting of one of an initial quality level and an incremented quality level, to which an image is encoded, the encoded data describing group significance levels in terms of partial scalar components, the partial scalar components related to the refinement range, the encoded data further describing portions of the set of wavelet coefficients that are within the refinement range; and transmitting the encoded data.