A hydraulic valve assembly includes a pressure compensating valve in which a compensator spool is slideably received in a bore. A pre-compensator gallery connected to a metering orifice, a preload gallery leading to a hydraulic actuator, an auxiliary pump supply passage, and a load sense passage all open into the bore. The compensator spool moves in response to a pressure differential between the pre-compensator gallery and the load sense passage. That movement selectively opens and closes a first path between the pre-compensator gallery and the a preload gallery, and a second path between the auxiliary supply passage and the load sense passage. Control of these paths maintains a constant pressure drop across the metering orifice and generates a pressure signal that is employed to regulate pressure at an outlet of a pump.