In this paper, the advantages of a power-control-based relay system for a code division multiple access (CDMA) network are explored. Relay nodes are placed in the form of a ring (not necessarily circular) based on system requirements, whereby a mobile user and base station can communicate directly or through relay nodes, depending on the received signal strength. Power control through the relays will provide an added advantage to the mobile stations, because they will use less power to transmit in reverse link. An optimal route is determined using the fundamental concept of the CDMA network, which is encouraging for implementing this system in practical circumstances. Through the proper allocation of relay nodes, coverage of the overall area (cell) can be extended. Area extension results for using relay nodes in the cell area are proven analytically. Finally, this paper shows that power-controlled relaying in a CDMA network will increase the number of active users per given cell at a given time.