Within the last decade, the continuous development of mobile technology has motivated an intense research in mobile data services. Among these services, location-based services and location-dependant queries have attracted a lot of attention from the software industry as well as from researchers. Although a number of locations based service methods have been proposed, the performance is not satisfactory in the case of dynamic data management problems that introduce high overhead in update and query operations. In this paper, we introduce a proxy based distributed dynamic data management architecture for location based services that reduces network cost with required quality of service (QoS). The system proposes a distributed hierarchical database structure with collocated proxy for efficient service delivery to location-dependant queries especially Range Queries (RQ). The system that we propose have the following advantages. i) It performs efficient processing of location dependant queries, especially Range Queries spanning over multiple network cells ii) It reduces wireless communication between mobile devices and servers. iii) The system is scalable where location data is distributed and arranged hierarchically. We use proxy objects to carry out processing task for each mobile user. Thus proxies play an important role and in charge of routing the queries to different (distributed) databases and present the results to queries efficiently. Simulation study shows the effectiveness of our proposed architecture.