Abstract-Information-theoretic limits to spectral efficiency in dense wavelength-division-multiplexed (DWDM) transmission systems are reviewed, considering various modulation techniques (unconstrained, constant-intensity, binary), detection techniques (coherent, direct), and propagation regimes (linear, nonlinear). Spontaneous emission from inline optical amplifiers is assumed to be the dominant noise source in all cases. Coherent detection allows use of two degrees of freedom per polarization, and its spectral efficiency limits are several b/s/Hz in typical terrestrial systems, even considering nonlinear effects. Using either constant-intensity modulation or direct detection, only one degree of freedom per polarization can be used, significantly reducing spectral efficiency. Using binary modulation, regardless of detection technique, spectral efficiency cannot exceed 1 b/s/Hz per polarization. When the number of signal and/or noise photons is small, the particle nature of photons must be considered. The quantum-limited spectral efficiency for coherent detection is slightly smaller than the classical capacity, but that for direct detection is 0.3 b/s/Hz higher than its classical counterpart. Various binary and nonbinary modulation techniques, in conjunction with appropriate detection techniques, are compared in terms of their spectral efficiencies and signal-to-noise ratio requirements, assuming amplified spontaneous emission is the dominant noise source. These include a) pulse-amplitude modulation with direct detection, b) differential phase-shift keying with interferometric detection, c) phase-shift keying with coherent detection, and d) quadrature-amplitude modulation with coherent detection.