Extending the lifetime of wireless sensor networks under energy resource limitations of the sensors is a challenging problem. To reach this goal, we propose, in this paper, an address allocation scheme that maximizes the correlation in addresses. This correlation is then exploited by the sensors to reduce the size of their packets transmitted to the sink by applying source coding on addresses. The proposed approach was formulated as an optimization problem that maximizes the network lifetime. The simulation results show that a significant network lifetime improvement can be achieved by using this solution.