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Digital watermarking has been proposed to increase the digital data security, confidentiality and integrity. Satellite image watermarking is a special category of image watermarking in the sense that the images have special requirements. Particularly, watermarked satellite images should not differ perceptually from the the original counterparts, because the purpose of taking the image must not be violated. This paper provides a third level DWT decomposition of the satellite image by choosing a region of interest and embedding the watermark in the same. The reason for choosing a region of interest is an area which contains important information and must be sent through media without any distortions and attacks. Image quality is checked out with a number of widely used metrics such as PSNR, normalized correlation and JPEG compression. The experimental results demonstrate the efficiency of the proposed scheme, which fulfills the strict requirements concerning alterations of satellite images.