Dynamic operation of voltage regulator (VR) has been proposed for voltage regulation in a distribution system with large integration of distributed generators (DGs). In conventional voltage control, VR's tap operation is adjusted based on the local bus voltage or voltage at load center. When considerable DGs are interconnected, voltage profile and power flow are not same as that of with conventional distribution system, at some instant reverse power flow may exist at the end of the distribution line or at VR. Thus there are possibilities of having voltage violation due to improper tap operation of VRs. This paper proposes a new method to determine line drop compensation (LDC) parameters based on the estimated current at VR. Voltage regulating point is shifted along the distribution line so that proper tap operation of VR is carried out to retain voltage regulation. It is found from the analysis that voltage violation is significantly reduced by the proposed method in comparison with conventional method.