A method of compensating for dispersion in a WDM optical communication system having a plurality of channels, said system including a transmitting and receiving terminal for transmitting and receiving, respectively, an optical signal, and an optical fiber transmission path coupling said first and second terminals, wherein said fiber transmission path has a dispersion substantially equal to zero for a selected channel and positive dispersion for a first set of channels and negative dispersion for a second set of channels, said method comprising the steps of:
- providing positive dispersion compensation to the second set of channels at or adjacent said transmitting terminal;
- and
- providing negative dispersion compensation to the first set of channels at or adjacent said receiving terminal.