We present the interval interpolating wavelet transform for fast image compression. Comparing with the common used wavelet coding, this method is more systematically stable, with less computing complexity and the inherent parallel processing. In theory, it has the nearly optimal minimax compression characteristics. The simulation shows that the interval interpolating wavelet transform are more qualified and remove the artificial blocking effects. The interval wavelet is introduced to deal with the boundary points of the finite localized image. This method does not only improve the compress rate, but also deletes the quantization aliasing of the boundary pixels.