This paper proposes an incremental algorithm for constructing the Delaunay overlaid network for virtual collaborative space. In our algorithm, every node uses Delaunay triangulation, by using its knowledge of other nodes and cooperatively exchanging information among nodes, which generates and refines overlaid networks. On the resultant Delaunay network, nodes communicate with each other over virtual collaborative space, and employ multihopping communication among distant nodes. This algorithm structure has the following advantages: (1) utilization of only the localized nodes, omitting the use of unnecessary distant nodes for communication, (2) scalability through surveillance of nodes by refining and updating the network continuously, (3) two dimensional space organization which allows construction of super nodes that govern regional areas to process geographical range query, and (4) directional communication through a small routing table. The authors believe that this approach is applicable to large-scale virtual collaborative space and location aware system.