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A dynamic P2P architecture based on MPEG-21 was proposed in our previous work to support resource adaptation/personalization according to the surrounding usage environment and user preferences. In this paper, we improve the proposed system through two separate but related modifications. Firstly, peers are clustered according to registered geographic location information. Secondly, based on that registered location information, a locality-based service is introduced which allows users to search services according to their geographic locations. The service complements the proposed P2P architecture by encouraging service providers to increase the uptime of their devices and hence provide the spare computer power for active adaptation of resources for low-end peers. Simulation results show that the proposed approach reduces download time and network delays while increasing resource availability and download speed in the network.