Rising congestion, costs of car ownership as a consequence of higher oil prices and the usage of alternate energy vehicles is leading to drivers find the most cost effective method of commute such as use of HOV lanes. Current HOV lanes in most deployments nationally have fixed lane assignments irrespective of the traffic demand and time of the day the traffic variations. The D-HOVS can revolutionize HOV operations through demand based lane assignments. D-HOVS provides an early DSRC deployment opportunity in the general purpose vehicles without large scale DSRC implementation. The concept elevates the role of Traffic Operations Center (TOC) in HOV management, encourages drivers to embrace use of carpooling and thus promotes efficiency, reduces congestion, improves the environment as well as the safety of the drivers.