Abstract-Given the user distribution in a cell, we investigate the two problems of how to appropriately sectorize the cell such that we minimize the total received power and the total transmit power of all the users, while giving each user acceptable quality of service in both cases. For the received power optimization problem, we show that the optimum arrangement equalizes the number of users in each sector. The transmit power optimization is formulated as a graph partitioning problem that is polynomially solvable. We provide an algorithm that finds the best sectorization assignment as well as the optimal transmit powers for all the users. The computational complexity of the algorithm is polynomial in the number of users and sectors. For both the received power optimization and the transmit power optimization, under nonuniform traffic conditions, we show that the optimum arrangement can be quite different from uniform cell sectorization (equal width sectors). We also formulate and solve the transmit power optimization and cell sectorization problem in a multicell scenario that would improve the capacity of a hot spot in the network. We observe that, with adaptive sectorization, where the sector boundaries are determined in response to users' locations, received and transmit power savings are achieved, and the number of users served by the system (system capacity) is increased compared to uniform sectorization of the cell.