A system and method for Term Rewriting System hardware design employs a scheduler that incorporates a preference order in scheduling conflicting rules. The scheduler schedules a conflicting rule to execute when its predicate is true, and it is preferred over other conflicting rules in the preference order. The preference order may be, in one embodiment, a user-specified preference order enumerated by a designer. Such an order may be chosen according to efficiency criteria, such that the conflicting rule most essential for efficient hardware will be scheduled to execute on a given state rather than less essential conflicting rules The system and method advantageously permits a schedule to be computed in a time frame polynomially related to the number of rules, and produces more predictable and more easily understood schedules than conventional methods.