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The unbalanced traffic load in the service area is unavoidable, and it can deteriorate the system performance. In this paper, the improved algorithm of dynamic pilot power adjustment is proposed and analyzed. The primary theory of this algorithm is to regulate the serving user number of each cell by adjusting its common pilot transmission power, according to the traffic load distribution, and finally achieve the load balancing in the system. We perform system simulation to evaluate the algorithms. The simulation results show the proposed algorithm can evidently balance the traffic load among the service cells, and it can improve the system capacity to a certain extent.