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In this paper, we have designed and implemented a new video surveillance system based on CDMA networks. It consists of a central server and a number of remote units, and each unit has four video channels. The remote unit encodes and stores the video images locally, and then transmits the encoded video stream to the central server via CDMA networks. To make the system efficiently work, we used modified H.263 algorithms and designed a video transmission protocol. We use the last good frame as reference image to avoid slowing down the frame rate. The experiments show that the maximum bit-rate could reach 70 Kbits/s. We have achieved a maximum frame rate at 6 frames/s with PSNR above 30 DBS. Since the system will be running in a wireless environment, fault tolerance, error correction and system stability are major concerns in software design and implementations.