A hydraulic system (22) having a source (24) of pressurized fluid, a fluid actuator (16) with a first chamber (50) and a second chamber (52), and a body (90). The body has a first valve (26) configured to selectively fluidly communicate the source with the first chamber and a second valve (30) configured to selectively fluidly communicate the source with the second chamber. The body also has a proportional pressure compensating valve (36) to control a pressure of fluid directed between the source and the first and second valves and a supply passageway (61) disposed between the source and the first and second valves in parallel and the proportional pressure compensating valve is disposed within the supply passageway.