Depth Images are viable representations that can be computed from the real world using cameras and/or other scanning devices. The depth map provides 2\frac{1} {2}D structure of the scene. A set of Depth Images can provide hole-free rendering of the scene. Multiple views need to blended to provide smooth hole-free rendering, however. Such a representation of the scene is bulky and needs good algorithms for real-time rendering and efficient representation. In this paper, we present a discussion on the Depth Image representation and provide a GPU-based algorithm that can render large models represented using DIs in real time. We then present a proxy-based compression scheme for Depth Images and provide results for the same. Results are shown on synthetic scenes under different conditions and on some scenes generated from images. Lastly, we initiate discussion on varying quality levels in IBR and show a way to create representations using DIs with different trade-offs between model size and rendering quality. This enables the use of this representation for a variety of rendering situations.