It was my understanding that 10.1 ArcGIS Server will build cache tiles from higher resolution tiles when you publish a mosaic dataset as an image service in 10.1.
I am building a national cache tile layer for imagery based on the NAIP 1M Mosaic Data Set. I purposely did not not build overviews on the Mosaic Data Set, since this takes a while, and it was my understanding that 10.1 built the lower resolution tiles directly from the higher resolution tiles (rather than going back to the orignal imagery). I completed the 1:4500 scale tiles, and noticed (using Windows Resource Monitor) that the service was still reading the original source imagery from the mosaic dataset when building the 1:9000 and 1:18000. As I mentioned, I don't have overviews/pyramids on these tiles, so the lower resolution tiles are not building nearly as fast as I would like.
We build a lot of cache tile layers from imagery. We don't want to build overviews/pyramids if we don't have to. My understanding was that this was an automatic feature. I can not find any way to tell ArcGIS Server to use the higher resolution tiles to build the lower resolution tiles.
My Mosaic Dataset was built based on 10 Mosaic Datasets (1 for each UTM Zone in lower 48). I don't know if this has anything to do with it.
Thanks in advance.