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In this paper, we propose a network-based distributed antenna array approach, in which a bit-interleaved rectangular parity-check coded modulation with an iterative demodulation scheme is used. Different from the conventional multiple-array systems, this distributed array employs a pair of physically separated identical receiving nodes. These nodes receive the transmitted signal through independent channels. The each node demodulates and decodes the received signal in an iterative manner. At each iteration, the pair of nodes exchange the reliability measure of a small portion of the symbols to obtain spatial diversity. Simulation results show that significant diversity gain can be achieved at much lower traffic cost than maximal ratio combining.