Recent work on depth map compression has revealed the importance of incorporating a description of discontinuity boundary geometry into the compression scheme. We propose a novel compression strategy for depth maps that incorporates geometry information while achieving the goals of scalability and embedded representation. Our scheme involves two separate image pyramid structures, one for breakpoints and the other for sub-band samples produced by a breakpoint-adaptive transform. Breakpoints capture geometric attributes, and are amenable to scalable coding. We develop a rate-distortion optimization framework for determining the presence and precision of breakpoints in the pyramid representation. We employ a variation of the EBCOT scheme to produce embedded bit-streams for both the breakpoint and sub-band data. Compared to JPEG 2000, our proposed scheme enables the same the scalability features while achieving substantially improved rate-distortion performance at the higher bit-rate range and comparable performance at the lower rates.