Abstract:XML is the de-facto standard for data representation and communication over the web, and so there is a lot of interest in querying XML data and most approaches require the data to be labelled to indicate structural relationships between elements. This is simple when the data does not change but complex when it does. In the day-to-day management of XML databases over the web, it is usual that more information is inserted over time than deleted. Frequent insertions can lead to large labels which have a detrimental impact on query performance and can cause overflow problems. Many researchers have shown that prefix encoding usually gives the highest compression ratio in comparison to other encoding schemes. Nonetheless, none of the existing prefix encoding methods has been applied to XML labels. This research investigates compressing XML labels via different prefix-encoding methods in order to reduce the occurrence of any overflow problems and improve query performance. The paper also presents a comparison between the performances of several prefix-encodings in terms of encoding/decoding time and compressed code size.