The design of a cooperative adaptive cruise-control (CACC) system and its practical validation are presented. Focusing on the feasibility of implementation, a decentralized controller design with a limited communication structure is proposed (in this case, a wireless communication link with the nearest preceding vehicle only). A necessary and sufficient frequency-domain condition for string stability is derived, taking into account heterogeneous traffic, i.e., vehicles with possibly different characteristics. For a velocity-dependent intervehicle spacing policy, it is shown that the wireless communication link enables driving at small intervehicle distances, whereas string stability is guaranteed. For a constant velocity-independent intervehicle spacing, string stability cannot be guaranteed. To validate the theoretical results, experiments are performed with two CACC-equipped vehicles. Implementation of the CACC system, the string-stability characteristics of the practical setup, and experimental results are discussed, indicating the advantages of the design over standard adaptive-cruise-control functionality.