A method and system for dynamic distributed data caching is presented. The system includes one or more peer members and a master member. The master member and the one or more peer members form cache community for data storage. The master member is operable to select one of the one or more peer members to become a new master member. The master member is operable to update a peer list for the cache community by removing itself from the peer list. The master member is operable to send a nominate master message and an updated peer list to a peer member selected by the master member to become the new master member.