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Emerging high-density WLANs in urban areas and enterprises offer great potential to accommodate the anticipated explosion of demand for wireless data services. To make it successful, it is critical that the network utilizes the limited radio resources efficiently while satisfying predefined quality of service (QoS) requirements. In this paper, we develop a real time and open ended algorithm for joint design of dynamic channel allocation and distributed power control. We show that in the case of optimal channel allocation, the convergence property for power control is further strengthened. The simulation results show that the joint design can lead to substantial throughput improvement and power saving compared with the benchmark scheme, where channels are randomly allocated and transmit power is kept fixed.