Distributed Video Coding (DVC) has been proposed for increasingly new application domains. This rise is apparently motivated by the very attractive features of its flexibility for building very low cost video encoders and the very high built-in error resilience when applied over noisy communication channels. Yet, the compression efficiency of DVC is notably lagging behind the state-of-the-art in video coding and compression, H.264/AVC in particular. In this context, a novel coding solution for DVC is presented in this paper, which promises to improve its rate-distortion (RD) performance towards the state-of-the-art. Here, Turbo Trellis Coded Modulation (TTCM), with its attractive coding gain in channel coding, is utilized and its resultant impact in both pixel domain and transform domain DVC framework is discussed herein. Simulations have shown a significant gain in the RD performance when compared with the state-of-the-art Turbo coding based DVC implementations.