Over the past decades, wavelet transformations are widely applied to seismic data processing, image processing, sound processing, and so on. In contrast, less attention is paid to wavelet-based simplification of geometrical elements, e.g., iso-contour simplification. This paper is intended to explore wavelet-based line simplification for the purpose of map generalization. Iso-contour simplification is taken into account. After making wavelet transformations of the iso-contour, the wavelet coefficients at certain level are tailored with a threshold. Innovatively, the threshold is evaluated by the extended radical law of Topfer and Pillewizer. Furthermore, the threshold is evaluated differently with the three-level importance of an iso-contour. The multilevel wavelet transformations of the iso-contour are performed, and the wavelet coefficients are thresholded at each level. Through a reverse transformation of tailored wavelet coefficients, a simplified iso-contour is obtained. Without the consideration of relationships between iso-contours, the generalized iso-contour map is a set of simplified iso-contours. The experiment of iso-contour generalization has shown the feasibility of wavelet-based line simplification by tailoring wavelet coefficients with a map scale-derived threshold.