Abstract: In a satellite communication system, communication channels are dynamically assigned in real-time based on actual demand using a regionalized channel assignment and reuse scheme. The tradeoff between system capacity and channel interference:is optimized through the use of interlocking local regions. Satellite communication stations within a radio line-of-sight of each other make up each local region. The communication stations of a local region change as the communication stations move through orbital positions. Channel reuse rules are adapted to system load and demand for services. Each communication station establishes its local region and notifies the other communication stations within its local region whenever it assigns a communication channel to a subscriber unit. Channel assignments within each local region are maintained locally by the defining communication station.