The invention is directed to systems and methods for re-arranging optical spectrum utilization so that unallocated portions of the spectrum may be made contiguous. Rearrangement of optical spectrum is accomplished by moving a channel from its initial spectral location to a targeted spectral location by reserving additional spectrum for that channel that at least includes the targeted spectral location, shifting the channel to the targeted location and then collapsing the reserved spectrum around the targeted location to cover the minimal required spectrum for the channel allocation of the channel. In some cases, a secondary channel can be used as an alternate source to carry user traffic while the first channel is shifted to the targeted location.