The detrimental effect of short-term fading and shadowing can be mitigated using microdiversity and macrodiversity systems, respectively. In this paper, implementation of selection combining at both micro and macro levels to improve system performance is analyzed. An assessment of the performance of such a system is carried out by considering the desired signal as Rician fading with lognormal shadowing and cochannel interference signal as Rayleigh fading superimposed over lognormal shadowing. The proposed analysis is complemented by various performance evaluation results, including the effects on overall system performance of fading severity, shadowing spreads and branch correlation existing at the base station, and correlation between base stations.