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In this paper a novel approach to accommodate distributed generation resources in the power distribution system is discussed to reduce the peak power demand. Demand dispatch is the capability of aggregate and precisely control individual loads on command. The novel implemented approach in this work is the demand dispatch to demand response. The dispatch algorithms in regularity base are used for controllable loads which can be turned on and off with unnoticeable interruption where the load is forecasted and it is dispatched accordingly by using distributed generation resources and controllable loads, thereby it helps to reduce peak demand. Multi-Agent System (MAS) is consisting a group of agents which are capable of perceived environment that they are located and act on it by communicating with each other to achieve the goals. Therefore a MAs has been adopted to manage the demand dispatch simulation. Load has forecasted in MATLAB and MAS has programmed in ZEUS utilize the forecasted load data to dispatch the load in such a way so as to reduce the peak demand. The agents are located at demand aggregator level, zone level and DG level. They communicate to dispatch the load properly based on resources and load availability.