With the rapid development of wireless communication technology, the wired automatic meter reading system is gradually replaced by the wireless one. In this paper, a new kind of wireless automatic reading system based on digital image processing technology, ZigBee and 3G network is proposed. This design mainly aims to apply in residential buildings or areas, and it uses digital image processing technology template matching method to get the meter data which is fast and really solves compatibility problems in meter reading system. At the end of the paper, securities of transmitting data to remote monitor center by 3G network are discussed. Virtual private network tunneling technology is used in this design which makes data transmission much more reliable and safer than the current meter reading system.Keywords-wireless automatic meter reading; ZigBee; 3G; image; VPN I.This kind of AMR system is a semi-automatic system actually. A man is still needed. Another solution to realize AMR is RS-485 communication automatic reading. And this kind of solution needs meters to have RS-485 communication port with a uniform standard. It usually uses a microcontroller such as an ARM microcontroller with an external RS-485 interface expansion to read meter data from RS-485 communication port, and then sends data to the remote monitoring center by the power line broadband carrier [4]. There are many disadvantages of broadband communication over power lines. Such as high noise sources over power lines, open circuit problem, adding noise pollution on the power network, security problems and so on. High noise sources over power lines are usually a noisy environment for data communication because there are several noise sources such as electrical motors, power supplies connecting to the power lines and the radio signal interferences can also disturb the communication. Open circuit problem: Communication over the power lines is lost with devices on the side of an open circuit. Adding noise pollution on the power network: the broadband communication over power lines itself is a kind of noise pollution to the power network. Security problems: power cables are not twisted and without shielding which means power lines produce a fair amount of Electro Magnetic Interference (EMI). Such EMI can be received via radio receivers easily.