Abstract: A system and method are provided for creating an XML network. As each XML router is added to the XML network, the new XML router registers with a group of existing XML routers in the network, and thereafter regularly exchanges hello messages with other XML routers in order to announce its initial and continued presence. Once an XML router is added to the group of routers forming the network, the adjacency of the new XML router is determined. The new XML router selects its adjacency based on a prioritized set of metrics, including TCP hops, IP cost, and fanout, along with specific parameters relating to fanout and IP cost. The order of priority of the metrics and the specific parameters can be set by an operator, allowing flexibility in creating an optimum XML network topology.