Abstract: A system for producing a set of dither matrix signals having local correlation comprises a processor, an input device, a display device, a hard output device, an incremental threshold generator, a pattern generator, an optimizer, a dither matrix storage, and a pixel activator. The incremental threshold generator determines a maximum tolerable error and generates an incremental threshold signal. The maximum tolerable error is the greatest tolerable variation between dither matrices for adjacent gray levels. The incremental threshold signal controls the transition of cells of dither matrices for adjacent gray levels. The pattern generator receives the incremental threshold signal and a dither matrix signal for the previous gray level and generates the possible pattern signals based on a dither matrix signal for an adjacent gray level and the incremental threshold signal.