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This paper presents two optimization algorithms that optimize the lifetime of Wireless Sensor Networks with correlation between the nodes' data. Our first algorithm concentrates on path optimization. It builds on the centralized CMAX routing algorithm, but it also takes into account the energy loss of packet reception. Our second algorithm uses Distributed Source Coding (DSC) as a data compression technique and it is built on the optimum rate assigned for minimizing total network power consumption. Compression rates and the routing paths are optimized separately, since with DSC the compression is independent from routing. The two optimization algorithms form a full optimization approach for maximizing network lifetime.