Efficiency of high-order essentially non-oscillatory (ENO) approximations o
f conservation laws can be drastically improved if ideas of multiresolution
analysis are taken into account. These methods of data compression not onl
y reduce the necessary amount of discrete data but can also serve as tools
in detecting local low-dimensional features in the numerical solution. We d
escribe the mathematical background of the generalized multiresolution anal
ysis as developed by Abgrall and Harten in [14], [15] and [3]. We were able
to ultimately reduce the functional analytic background to matrix-vector o
perations of linear algebra. We consider the example of interpolation on th
e line as well as the important case of multiresolution analysis of cell av
erage data which is used in finite volume approximations. In contrast to Ab
grall and Harten, we develop a robust agglomeration procedure and recovery
algorithms based on least-squeare polynomials. The efficiency of our algori
thms is documented by means of several examples.