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KNIVES is proposed as Internet based demand and supply control system and controls power by using distributed and cooperative power control algorithm. However, if KNIVES aims to maintain indoor environmental amenity, installed locations and the numbers of environmental sensors are critical issues. Wireless sensor network is useful to measure environmental data of various points where a wired sensor is not available or cost of wired installation is expensive, and makes it easy to install or to relocate the sensors. In this paper, we implement ZigBee wireless sensor network and make operational test to discuss about the application of demand control method by using wireless sensor network. Furthermore, we propose some demand control application with ZigBee, customized environment-based control and head-count-based control, to make DSM more efficient.