The goal of this research is to suggest a new approach for performing dynamic origin-destination estimation on a controlled simulation network that is expanded from an existing/starting network by adding different sub-areas to the existing network. In micro-simulation analyses, estimating origin-destination (OD) is a very time consuming and data intensive process. This research presents an incremental procedure to develop dynamic OD (origin-destination) matrices for a controlled network with different sub-areas added to the starting network to avoid extensive effort in re-estimating the matrices for an existing area for which matrices are already estimated once, thus reducing the time required to obtain the OD matrices for vehicular micro-simulation.. Fractions of traffic from existing external origins and destinations to various other origins and destinations are utilized in the scheme to properly develop the origin and destination demand to/from the new origins and destination in the additional areas.