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Transmissions in different cells of a time-division duplex system are typically synchronous in order to eliminate the base station-to-base station and terminal-to-terminal interference. The synchronous operation limits dynamic resource configuration for downlink and uplink transmissions. Today, as a large percentage of mobile traffic is generated in hotspots and indoor environments, heterogeneous networks comprising high-power/wide-area and low-power/local-area network nodes are becoming a reality. Such heterogeneous networks provide opportunities to exploit dynamic uplink-downlink configuration in TDD systems, adapting to the individual traffic needs of a specific cell area. This article presents a tutorial overview of dynamic uplink-downlink configuration and interference management in time-division Long Term Evolution, including motivations, target deployment scenarios, opportunities and challenges, system requirements, design aspects, and performance evaluations.