  Let $\D$ be the finite difference Laplacian associated to the lattice
$\bZ^{d}$. For dimension $d\ge 3$, $a\ge 0$ and $L$ a sufficiently large
positive dyadic integer, we prove that the integral kernel of the resolvent
$G^{a}:=(a-\D)^{-1}$ can be decomposed as an infinite sum of positive
semi-definite functions $ V_{n} $ of finite range, $ V_{n} (x-y) = 0$ for
$|x-y|\ge O(L)^{n}$. Equivalently, the Gaussian process on the lattice with
covariance $G^{a}$ admits a decomposition into independent Gaussian processes
with finite range covariances. For $a=0$, $ V_{n} $ has a limiting scaling form
$L^{-n(d-2)}\Gamma_{c,\ast}{\bigl (\frac{x-y}{L^{n}}\bigr)}$ as $n\to \infty$.
As a corollary, such decompositions also exist for fractional powers
$(-\D)^{-\alpha/2}$, $0<\alpha \leq 2$. The results of this paper give an
alternative to the block spin renormalization group on the lattice.
