A spectral-polarization coding (SPC) optical code-division multiple-access (OCDMA) configuration structured over arrayed-waveguide grating (AWG) router is proposed. The polarization-division double balanced detector is adopted to execute difference detection and enhances system performance. The signal-to-noise ratio (SNR) is derived by taking the effect of PIIN into account. The result indicates that there would be up to 9-dB SNR improvement than the conventional spectral-amplitude coding (SAC) structures with Walsh-Hadamard codes. Mathematical deriving results of the SNR demonstrate the system embedded with the orthogonal state of polarization (SOP) will suppress effectively phase-induced intensity noise (PIIN). In addition, we will analyze the relations about bit error rate (BER) vs. the number of active users under the different encoding schemes and compare them with our proposed scheme. The BER vs. the effective power under the different encoding scheme with the same number of simultaneous active user conditions are also revealed. Finally, the polarization-matched factor and the difference between simulated and experimental values are discussed.