Apparatus and method of operating a centrifugal compressor and active control system includes a centrifugal compressor with compressor blades mounted on an impeller, an annular cavity bounded in part by a shroud adjacent to the blades, and an active control system for controlling a clearance between the shroud and the blades by controlling a cavity pressure in the cavity. An electronic controller for controlling a control pressure valve for pressurizing using a source of compressor discharge pressure air and depressurizing the cavity respectively may open and close the valves using pulse width modulation. Pressure and clearance sensors positioned for measuring the cavity pressure the blade tip clearance respectively in signal supply communication with the electronic controller may be used. The shroud may be supported by radially spaced apart annular radially outer and inner supports connected to a casing by a bolted joint bounding the cavity.