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There has been a continuous development of PWM strategies addressing different inverter topologies, as well as requirements of efficiency and minimal distortion. In this paper we present a novel PWM strategy for a voltage source inverter for AC drives which is based on the use of a Feedback Quantizer (FBQ).We begin with a simple implementation with a three phase two level inverter and show that it yields an excellent harmonic performance compared with existing methods. We then gradually introduce embellishments that add desirable properties to the FBQ-PWM, such as improved reference tracking, harmonic rejection and extended range of linear modulation. We back up our conclusions with extensive simulations in the Saber environment. Further directions of development of the proposed strategy conclude the paper.