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The Grid environment facilitates collaborative work and allows many users to query and process data over geographically dispersed data repositories. Over the past several years, there has been a growing interest in developing applications that interactively analyze datasets, potentially in a collaborative setting. We describe the Active Proxy-G service that is able to cache query results, use those results for answering new incoming queries, generate subqueries for the parts of a query that cannot be produced from the cache, and submit the subqueries for final processing at application servers that store the raw datasets. We present an experimental evaluation to illustrate the effects of various design tradeoffs. We also show the benefits that two real applications gain from using the middleware.