This paper proposes a distributed virtual network topology (VNT) reconfiguration method for Internet protocol over wavelength-division-multiplexing network under dynamic traffic demand. We developed a simple heuristic algorithm for calculating the VNT for distributed control. Generalized multiprotocol, label switching (GMPLS)-based routing protocol has been developed. The VNT is quickly reconfigured by setting up and/or tearing down lightpaths using GMPLS signaling protocol. Traffic demand is measured at the ingress node and advertised by the extended GMPLS routing protocol. Performance of the proposed method is investigated using variable traffic model.