A new distributed algorithm of data ccompression based on hierarchical cluster model for sensor networks is proposed, the basic ideas of which are as follows, firstly the whole sensor network is mapped into a kind of hierarchical clusters model, and then different wavelet transform models are used to commit data compression in inner and super clusters respectively, according to the relative regularity of sensor nodes deployed in the inner clusters, and the relative irregularity of sensor nodes deployed in super cluster. Theoretical analyses and simulation results show that, the above new methods have good performance of approximation, and can compress data and reduce the amount of data efficiently. So, it can prolong the lifetime of the whole sensor network to a greater degree.