A data storage system includes an encoder subsystem comprising an error correction code encoder, a modulation encoder, and a precoder, and a decoder subsystem similarly comprising a detector, an inverse precoder, a channel decoder, and an error correction code decoder. The error correction encoder applies an error correction code to the incoming user bit stream, and the modulation encoder applies so-called modulation or constrained coding to the error correction coded bit stream. The precoder applies so-called precoding to the modulation encoded bit stream. However, this precoding is applied to selected portions of the bit stream only. There can also be a permutation step where the bit sequence is permuted after the modulation encoder before precoding is applied by the precoder. The decoder subsystem operates in the inverse manner.