Hydraulic actuation systems have a broad range of applications covering almost all areas of manufacturing and production and also the service industry. However, it is usual for systems to have low energy efficiency. In recent decades, due to global environmental concerns, research in the field of digital hydraulics to develop more efficient hydraulic systems has increased. In this paper, an analysis of the possible combinations of chambers in a multichamber cylinder is presented. A mathematical expression is derived to verify the total number of combinations of chambers that it is possible to achieve for a cylinder with four or more chambers and that result in different constant velocities without cavitation occurring. In addition, a digital hydraulic pump is considered a supply unit and, since it has discrete output flow rates, an analytical method to combine the pump with a multichamber cylinder is developed resulting in a total number of cylinder velocities with a required resolution. For application in a positioning system, design guidelines for an actuator using a cylinder with four chambers and a digital hydraulic pump with three fixed displacement units are presented in which an optimization algorithm for the calculation of the cylinder areas and the volumetric displacement of the pumps is applied. The proposed approaches were applied to design a proof-of-concept and the experimental values presented very good accuracy when compared with the results obtained with the model. Closed-loop position control responses show that the system can achieve the required setting time with a smooth movement and steady-state error of around 1 mm.