A method and system are provided for partitioning a database and for balancing the processing load among processing nodes in a data processing system. A database partition is stored at each node and a logical owner node is assigned to each partition. The logical owner becomes responsible for all database requests related to the corresponding partition. Techniques for optimally assigning logical owners to all partitions in a system are provided and are responsive to parameters such as the load at each node, the combined load of the system, and the total number of assignments allowed. Techniques are also provided to accomplish the transfer of partition ownership between processing nodes when multiple transactions related to the partition are simultaneously occurring.