Until now static spectrum management has ensured that DSL lines in the same cable are spectrally compatible under worst-case crosstalk conditions. Recently dynamic spectrum management (DSM) has been proposed aiming at an increased capacity utilization by adaptation of the transmit spectra of DSL lines to the actual crosstalk interference. In this paper, a new DSM method for downstream ADSL is derived from the well-known iterative water-filling (IWF) algorithm. The amount of boosting of this new DSM method is limited, such that it is spectrally compatible with ADSL. Hence it is referred to as spectrally compatible iterative water filling (SC-IWF). This paper focuses on the performance gains of SC-IWF. This method is an autonomous DSM method (DSM level 1) and it will be investigated together with two other DSM level-1 algorithms, under various noise conditions, namely, iterative water-filling algorithm, and flat power back-off (flat PBO).