This paper addresses initial ranging (uplink synchronization and power control) for TDD OFDMA systems. Exploiting the channel knowledge from the downlink channel together with initial power control, we develop a novel initial ranging method which provides multiuser diversity gain and significant power saving for the subscriber stations. We present new ranging signal designs which enable multiuser diversity gain and facilitate new efficient low-complexity algorithms for multiuser ranging signal detection, timing estimation and power estimation. The advantages of the proposed approach over existing methods in terms of the ranging signal detection performance, the number of ranging frames required to finish the ranging process (latency at the network entry), the timing and power estimation performance, the ranging transmission power saving at the subscriber stations, and the complexity saving at the base station are illustrated by analytical and simulation results.