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Initial transmission power and spatial user information (ITP&SUI)-based channel assignment algorithm in CAC procedure is proposed and studied in a TDD-CDMA cellular system. Time slot priority is introduced as the criteria of channel assignment. New user will be assigned in the time slot which has the highest priority. The time slot priority is updated dynamically according to our proposed algorithm at the node B. The performance of the algorithm is compared together with other traditional algorithms under both homogeneous and hot spot traffic loading via computer simulation. The results show that the ITP&SUI-based channel assignment algorithm always outcomes the traditional algorithm in both downlink and uplink. The primary benefit of ITP&SUI-based channel assignment algorithm in the TDD-CDMA cellular system, however, lies in improving the system performance and saving the power consumption of UE, especially under hot spot traffic.