This paper presents a new method for an efficient coding of very low bit-rate color video based on adaptive wavelet transform. Our approach reveals that the coding process works more efficiently if the quantized wavelet coefficients are preprocessed by a mechanism exploiting the redundancies in the wavelet subband structure. Thus, we focuses optimized activity of coding part, and exhaustive overlapped block motion compensation is utilized to ensure coherency in motion compensated error frames, and raised cosine window is applied. The horizontal and vertical components of motion vectors are encoded separately using adaptive arithmetic coding while significant wavelet coefficients are encoded in bit-plane order using adaptive arithmetic coding. On average the proposed codec exceeds H.263 and ZTE in peak signal-to-noise ratio by as much as 2.07 and 1.38dB at 28 kbits, respectively. Fore entire sequence coding, 3DWCVC method is superior to H.263 and ZTE by 0.35 and 0.71dB on average, respectively.