This paper presents a high-performance, low-complexity, quasi-distributed dynamic spectrum management (DSM) algorithm suitable for DSL systems. We analytically demonstrate that the rate degradation of the distributed iterative waterfilling (IW) algorithm in near-far scenarios is caused by the insufficient utilization of all available frequency and power resources due to its nature of noncooperative game theoretic formulation. Inspired by this observation, we propose the selective IW (SIW) algorithm that can considerably alleviate the performance degradation of IW by applying IW selectively to different groups of users over different frequency bands so that all the available resources can be fully utilized. For N users, the proposed SIW algorithm needs at most N times the complexity of the IW algorithm, and is much simpler than the centralized optimal spectrum balancing (OSB), while it can offer a rate performance much better than that of the IW and close to the maximum possible rate region computed by the OSB in realistic near-far DSL scenarios. Furthermore, its predominantly distributed structure makes it suitable for DSL implementation.