Techniques for managing interference in a wireless network are described. In an aspect, reduce interference requests and interference indicators may be used for interference management to enable operation in scenarios with dominant interferers. In one design, a terminal may receive a reduce interference request from a first base station requesting lower interference on specified time-frequency resources. The terminal may also receive an interference indicator conveying the interference observed by a second base station. The terminal may determine its transmit power based on the reduce interference request and the interference indicator. For example, the terminal may determine an initial transmit power based on the reduce interference request (or the interference indicator) and may adjust the initial transmit power based on the interference indicator (or the reduce interference request) to obtain its transmit power. The terminal may transmit data to a serving base station at the determined transmit power.