Transmit power for a user equipment (UE) is set by a Home NodeB (HNB) in response to interference at a nearby macrocell. The HNB monitors an interference level to the macrocell from a UE communicating with the HNB. An acceptable transmit power for the UE is determined by the HNB in response to the interference level. A power change indicator is transmitted from the HNB to the UE to adjust the transmit power of the UE. In some cases, the interference may be estimated from a busy indicator from the macrocell and the HNB sends a modified version of the busy indicator to the UE to adjust the transmit power of the UE. In other cases, the HNB estimates a path loss for the UE based on received signal power from the macrocell and signals a transmit power change to the UE, if needed, based on the estimated path loss.