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This study presents a transform-domain distributed video coding (DVC) system with a rate-distortion (R-D)-based adaptive quantisation (AQT) scheme. In the proposed system, the transform-domain Wyner-Ziv frame is divided into partitions and is adaptively quantised based on estimated local R-D characteristics for each partition. The R-D estimation is performed based on a correlation model between the original source information and the side information and can be applied at the decoder without adding complexity to the encoder. Coding results and comparisons with existing DVC schemes and with H.264/AVC interframe and intraframe coding are presented to illustrate the performance of the proposed system.