Technical innovation in power distribution networks is pointing toward a decentralized control vision to deal with the issues in design and operations related to distributed energy resources. Thus, decentralized approaches to power flow management (PFM) are of significant importance from the distributed network operator (DNO) perspective. In this paper, a new hybrid distributed control approach is proposed to deal with thermal overload issues. The control algorithm is based on constraint satisfaction problem that is applied to solve the network constraint problem. The novelty of this control approach consists in the joint control of both distributed generation and demand response units for PFM in an autonomous regional control environment. The implementation of this demand-side management, integrated active network management, and distributed control technique contributes to network reinforcement deferral, economy of supply, and efficient capital expenditure. Simulation has been implemented in a medium voltage interconnected test network with a substation controller and a network simulator. The control actions successfully achieve the desired objectives and are evaluated in comparison analysis. This new hybrid distributed control technique has potential to benefit the DNO planning and operation activities in the development of future decentralized smart grids.Index Terms-Active network management (ANM), constraint satisfaction problem (CSP), demand response (DR)/demand-side management (DSM), distributed control.