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The POP servers usually have overloaded burden in the current Video Grid. This paper puts forward a technique to import P2P mechanism into Video Grid to alleviate the burden of POP servers. PGVOD is proposed under this technique. It can send video streams buffered in client computers to other clients so as to alleviate the burden of POP servers, shorten the transmission path of video streams in network, to improve the scalability of the Video Grid. The design schema of the framework and the operation mode of nodes in PGVOD system, the design and the process of management of dynamic update of the LCN are described in detail. Finally, PGVOD is compared with a VOD system--Video Grid of C/S structure. The result shows that PGVOD can save bandwidth of network; improve the throughput and performance of the system efficiently.