A system and method are provided for non-causal channel equalization in a communications system. The method comprises: establishing a first threshold (V1) to distinguish a high probability “1” first bit estimate; establishing a second threshold (V0) to distinguish a high probability “0” first bit estimate; establishing a third threshold (Vopt) to distinguish first bit estimates between the first and second thresholds; receiving a non-return to zero (NRZ) data stream; comparing the first bit estimate in the data stream to a second bit value received prior to the first bit; comparing the first bit estimate to a third bit value received subsequent to the first bit; in response to the comparisons, determining the value of the first bit.