Considering the characteristics and location information of nodes in sensor networks, a modified directed transfer model of sensor networks and a new distributed data aggregation model based on “area” are proposed. On the basis of these new models, a novel mixed entropy data compression algorithm based on interval wavelet transforming is proposed for sensor network, according to the characteristics of data in sensor networks and the good performances of wavelet transforming in compression of the data stream. Theoretical analyses and simulation results show that, the above new methods can compress the data stream and reduce the energy costs of nodes in data transferring efficiently for sensor networks. So, it can prolong the lifetime of the whole networks to a greater degree when the above new methods are deployed with those traditional DC (data centric) routing algorithms such as DD (directed diffusion) protocol for sensor networks.