En-route data compression is fundamental to reduce the power consumed for data gathering in sensor networks. Typical in-network compression schemes involve the distributed computation of some decorrelating transform on the data; the structure along which the transform is computed influences both coding performance and transmission cost of the computed coefficients, and has been widely explored in the literature. However, few works have studied this interaction in the practical case when the routing configuration of the network is also built in a distributed manner. In this paper we aim at expanding this understanding by specifically considering the impact of distributed routing tree initialization algorithms on coding and transmission costs, when a tree-based wavelet lifting transform is adopted. We propose a simple modification to the collection tree protocol (CTP) which can be tuned to account for a vast range of spatial correlations. In terms of costs and coding efficiency, our meth...