The two-step ordered local packing (TOLP) scheme - a base station distributed dynamic channel assignment algorithm - is proposed, and its performance is studied in a highway microcellular radio environment. Channels are assigned in an ordered basis under cochannel interference constraints. Reassignment makes a room for a call in a congested microcell to provide high capacity and adaptability to temporal and spatial traffic variations. Selection criteria value and economical reassignment are designed to reduces the average switchings/call. Simulation results show significant performance improvements in channel utilization and probability of call failure, especially under asymmetrical loading conditions, with a lower complexity and call switching requirements.