In this paper we investigate image compression from a perceptual viewpoint. We develop a detailed image compression scheme usingmultiscale edges of the image, based on wavelet maximarepresentations. We also develop a detailed implementation of theHuman Visual System (HVS) performance evaluation model. The HVSmodel includes all key components of the physiological human visual model,and it provides a performance evaluation of image compression linked toperceptual criteria. Using the HVS we show that image compressionbased on multiscale edges gives results inferior to standard schemessuch as JPEG.