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Ethanol offers significant potential for increasing the compression ratio of SI engines resulting from its high octane number and high latent heat of vaporization. A study was conducted to determine the knock-limited compression ratio of ethanol-gasoline blends to identify the potential for improved operating efficiency. To operate an SI engine in a flex fuel vehicle requires operating strategies that allow operation on a broad range of fuels from gasoline to E85. Since gasoline or low ethanol blend operation is inherently limited by knock at high loads, strategies must be identified which allow operation on these fuels with minimal fuel economy or power density tradeoffs. A single-cylinder direct-injection spark-ignited engine with fully variable hydraulic valve actuation (HVA) is operated at WOT and other high-load conditions to determine the knock-limited compression ratio (CR) of ethanol fuel blends. The geometric CR is varied by changing pistons, producing CR from 9.2 to 12.87.