In a communication system in which direct sequence spread spectrum modulation techniques are used interference is generated in communications by remote stations since the communications share the same frequency spectrum. In order to increase system capacity the power level of the remote station transmitters are controlled by the local station. A setpoint is generated by the local station and compared with the remote station signal strength measured at the local station. The result of this comparison is used to generate power level adjustment commands which are sent to the remote station. The remote station is responsive to the power level adjustment commands for increasing or decreasing remote station transmitter power. In a spread spectrum communication system in which data is encoded at variable data rates, the local station determines the rate at which received data was encoded by the transmitting remote station. The data is decoded at each possible rate with error metrics generated that are representative of the quality of the data decoded at each rate. A rate decision algorithm is used to evaluate the error metrics and make a decision on the rate at which the data was transmitted. A pattern match of rate decisions is used to modify a setpoint so as to closely control the transmitting power of the remote station as a function of the quality of the received data.