A method and system is disclosed for setting forward-link power for an access terminal operating in a coverage area of a wireless communication system, whereby power is redistributed from access terminals operating in the same coverage area and having forward-link power in excess of their needs for maintaining acceptable service quality, to an access terminal that is in need of additional forward-link power in order to attain a desired or required level of service quality. Following a determination that a given access terminal is requesting a forward-link transmission power level that exceeds a first threshold power level, a number of other access terminals are identified as each having requested a respective decrease in forward-link transmission power level by an amount at least as large as a respective threshold amount. Forward link power to the given access terminal is then increased by an incremental amount, and the forward-link transmission power level to each of the number of other access terminals is decreased by a respective decremental amount, wherein the sum of all the respective decremental amounts equals at least the incremental amount.