Wavelet transforms provide basis functions for time-frequency analysis and have properties that are particularly useful for the compression of analogue point on wave transient and disturbance power system signals. This paper evaluates the compression properties of the discrete wavelet transform using actual power system data. The results presented in the paper indicate that reduction ratios up to 10:1 with acceptable distortion are achievable. The paper discusses the application of the reduction method for expedient fault analysis and protection assessment.