A technique facilitates drilling of wellbores with a steerable system having a plurality of pads which may be selectively actuated in a lateral direction to apply a side force. Application of the side force is used to steer a drill bit. A valve system is positioned to control delivery of actuating fluid under pressure to individual pads in a manner that enables steering of the drill bit. The valve system allows drilling along a desired curve by controlling the flow of actuating fluid under pressure to specific steering pads at specific angular positions. The valve system also allows drilling along a desired trajectory by preventing exposure of the pads to the pressurized actuating fluid.