This paper proposes the assignment of resource blocks (RBs) to reduce the peak-to-average power ratio (PAPR) of orthogonal frequency division multiplexing (OFDM) in a multi-user OFDM system. This system ranks the users according to the channel state information (CSI) for RB assignment. In our proposed technique, an RB is assigned to either the first- or second-ranked mobile station (MS) to minimize the PAPR of the OFDM signal. While this process reduces the PAPR, the throughput is also reduced because of the user diversity gain loss. A PAPR-throughput trade-off is then established. Theoretical analyses and computer simulations confirm that when the number of MSs becomes large, the PAPR-throughput tradeoff is eased because of the minimal effect of the diversity gain loss. Therefore, significant PAPR reduction is achieved with only a slight degradation in the throughput.