A system and method are provided for five-level non-causal channel equalization in a communications system. The method comprises: receiving a non-return to zero (NRZ) data stream input; establishing a five-level threshold; comparing the first bit estimate 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; and, in response to the comparisons, determining the value of the first bit. Establishing a five-level threshold includes: establishing thresholds to distinguish a first bit value when the second and third bit values are a “1” value, when the second bit value is a “1” and the third bit value is a “0”, when the second bit value is a “0” and the third bit value is a “1”, when the second and third bit values are a “0” value, and an approximate midway threshold.