Recently we introduced a phase space approach for solving the time-independent Schrödinger equation using a periodic von Neumann basis with bi-orthogonal exchange (pvb) [A. Shimshovitz and D. J. Tannor, Phys. Rev. Lett. 109, 070402 (2012)]. Here we extend the approach to allow a wavelet scaling of the phase space Gaussians. The new basis set, which we call the wavelet pvb basis, is simple to implement and provides an appealing alternative to other wavelet approaches. For the 1D Coulomb problems tested in this paper, the method reduces the size of the basis relative to the Fourier grid method by a factor of 13-60. The savings in basis set size is predicted to grow steeply as the dimensionality increases.