To solve the energy problem and find new growth engines, the smart grid is getting more and more attention these days. AMI is the key component that should be preferentially constructed for smart grid. To establish a PLC-based AMI system with the existing conventional power supply network can save cost in construction of communication lines. However, the infrastructure is not ideal for communication because of signal attenuation and noise due to its harsh and noisy transmission medium, regulations and admission, and isolated place. In this paper, we analyze the requirements for building AMI system with Binary CDMA technology, and design a Binary CDMA-based AMI system. The performance evaluation results show that the Binary CDMA-based AMI system can be used together with the conventional PLC-based AMI system, or used alone.