The Coarse Wavelength Division Multiplexing (CWDM) system presented in this paper has several distinct characteristics from the standard CWDM system. One of them is the channel spacing whereby it uses smaller channel spacing compared to the standard system. The other is that, the system uses a broad spectrum laser source. The source is filtered by using 'Bragg Grating' before being transmitted. The filtration gives higher OSNR compared to standard CWDM setup. It was found that the system can transmit through each channel up to 2.5 Gbps with the probability of error of 10-12. The maximum distance that can be supported by this system is about 27 km, for the data rate of 155 Mbps.