This paper provides details concerning the design of an integrated voice and data communications link for a Local Area Network that must utilize residential type 2 pair telephone wiring as its transmission medium. The communications link can provide a worst case total data rate of 80 K bps (full duplex), 80 K analog samples of audio signals total (full duplex), as well as power and ground for remote terminals. In a system design that utilizes the communications link discussed here, the above total values of data and audio information flow can be divided by the number of terminals anticipated in the system in any ratio desired. The intent of the design of the communications link is to provide what is believed to be the most cost effective means of implementing an intelligent network of consumer based products in a residential or small business type of environment. In this document, the original technical problem is discussed along with details concerning the development of the solution presented here. The system design example that is presented is only provided as an aid to understanding how the communications link can be applied and is not the focus of the central concept. In that example, the system is comprised of 8 remote terminals and one central control terminal — all of which are voice and data devices. Therefore, the available continuous data rate per terminal is 10 K bps with 5 Khz full duplex audio.