Abstract: An underwater acoustic telemetry system uses spatially distributed receivers with aperture sizes from 0.35 to 20 m. Output from each receiver is assigned a quality measure based on the estimated error rate, and the data, weighted by the quality measure, is combined and decoded. The quality measure is derived from a Viterbi error-correction decoder operating on each receiver. The quality estimator exploits the signal and noise differential travel times to individual sensors. The spatial coherence structure of the shallow-water acoustic channel shows relatively low signal coherence at separations as short as 0.35 m. Increasing receiver spacing beyond 5 m offers additional benefits in the presence of impulsive noise and larger scale inhomogeneities in the acoustic field. Diversity combining, even with only two receivers, can lower uncoded error rates by up to several orders of magnitude while providing immunity to transducer jamming or failure.