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For the defect of traditional voltage and reactive power control of substation based on “Nine-Area Diagram” control strategy, presence of transformer fitted with OLTC and capacitor banks switching frequently have certain impact on the voltage of distribution system. In addition, its range of adjustment is major and it can't realize surpassingly accurate adjustment for voltage and reactive power. Based on traditional voltage and reactive power control system(VQC)of substation and integrated with Static Var Generator (SVG) and Dynamic Voltage Restorer (DVR), this article propose dynamic voltage and reactive power control system (DVQC) based on “Sixteen-Area Diagram” control strategy.