In this paper, we present a novel application for antenna arrays in wireless communication systems. Here, antenna arrays at the base station are used to create 1) directionality which supports spatial multiplexing and 2) a scanning beam pattern, allowing receivers at the mobile unit to subdivide the symbol time into L partitions, each with independent fades. Combining the signals received in different symbol time partitions (at the mobile unit) results in diversity gains. In this way, diversity benefits (due to an antenna array) are achieved at the mobile unit with the smart antenna array located at the base station (rather than in the mobile itself), a significant cost saving for wireless communication systems.