This thesis presents a new distributed load balancing algorithm for client-serverbased distributed virtual environment systems. The algorithm establishes new zone boundaries for load balancing and its cell-based zone management scheme allows arbitrary shapes in zone boundaries. Our zone management scheme has an advantage over the normalized zone management schemes used in the existing load balancing algorithms; it reduces overhead in terms of the number of transferred cells by exploiting more freedom in the boundary selection. The server in our algorithm also maintains the expected loads in order to facilitate concurrent load balancing with multiple servers. Simulation results show that our algorithm reduces the over-head by about 40% while achieving the load balance to the same degree as existing algorithms.