Systems and methods for reducing the peak-to-average ratio (PAR) at the transmitter can reduce the dynamic range required in various analog components. PAR can be reduced by applying a time-domain compensation signal which reduces the magnitude of peaks in the time-domain signal prior to transmission where the time-domain compensation signals use tones that are reserved for the purpose of reducing the PAR. The reservation of these reserved tones for PAR can be implemented by altering the typical startup procedures in a digital subscriber line (xDSL) system. The use of the reserved tones to reduce the PAR can be implemented using a low complexity algorithm or using an adaptive technique.