T. Reginska and L. Elde'n: Stability and Convergence of a Wavelet-Galerkin Method for the Sideways Heat Equation. Lars Eld\'en Teresa Regi\'nska Department of Mathematics, Institute of Mathematics Link\"oping University, Polish Academy of Sciences S-581 83 Link\"oping, Sweden 00-950 Warsaw, Poland ABSTRACT We consider an inverse heat conduction problem, the Sideways Heat Equation. This is a Cauchy problem for the heat equation in a quarter plane, with data given along the line $x=1$, where the solution is wanted for $0 \leq x < 1$. The problem is ill--posed, in the sense that the solution (if it exists) does not depend continuously on the data. We discuss the the stability and convergence properties of a wavelet-Galerkin method for solving the sideways heat equation. The wavelets are of Meyer type that have compact support in frequency space. Previous stability results for this method were suboptimal. We show that with additional assumptions concerning the smoothness of the solution, and concerning the definition of the wavelets, we can obtain almost optimal error estimates.