Techniques for managing peak-to-average power ratio (PAPR) for multi-carrier modulation in wireless communication systems. Different terminals in a multiple-access system may have different required transmit powers. The number of carriers to allocate to each terminal is made dependent on its required transmit power. Terminals with higher required transmit powers may be allocated fewer carriers (associated with smaller PAPR) to allow the power amplifier to operate at higher power levels. Terminals with lower required transmit powers may be allocated more carriers (associated with higher PAPR) since the power amplifier is operated at lower power levels. The specific carriers to assign to the terminals may also be determined by their transmit power levels to reduce out-of-band emissions. Terminals with higher required transmit powers may be assigned with carriers near the middle of the operating band, and terminals with lower required transmit powers may be assigned with carriers near the band edges.