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In this paper, we propose a new modulation/multiplexing system using wavelet transform. This new modulation technique makes use of the existing standard (orthogonal frequency division multiplexing) OFDM system and replacing the Fourier transform blocks by wavelet transform blocks. There are different types of wavelet transforms are available, out of which 4 were chosen. They are Haar, Daubechies4, Biorthogonal and reverse Biorthogonal transforms. The performance of the wavelet based OFDM system using various modulations like BPSK, DPSK, QPSK, DQPSK, OQPSK and 16-QAM was assessed by various parameters such as bit error rate, eye diagram and constellation diagram. The best among all the transforms was concluded to be the haar transform and the best modulation was BPSK. The sample results of all the transforms with bpsk with an SNR of 18db are as shown. The proposed system is named (orthogonal haar wavelet division multiplexing) OHWDM.