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In cellular mobile communications, how to achieve optimum system capacity with limited frequency spectrum is one of the main research issues. Many dynamic channel assignment (DCA) schemes have been proposed and studied to allocate the channels more efficiently, thus, the capacity of cellular systems is improved. Reuse partitioning (RP) is another technique to achieve higher capacity by reducing the overall reuse distance. In this paper, we present a network-based DCA scheme with the implementation of RP technique, namely dynamic reuse partitioning with inteference information (DRP-WI). The scheme aims to minimize the effect of assigned channels on the availability of channels for use in the intefering cells and to reduce their overall reuse distances. The performance of DRP-WI is measured in terms of blocking probability and system capacity. Simulation results have confirmed the effectiveness of DRP-WI scheme. Under both uniform and non-uniform traffic distributions, DRP-WI exhibits outstanding performance in improving the system capacity. It can provide about 100% capacity improvement as compared to conventional fixed channel assignment scheme with 70 system channels.