Using shared memory as a data exchange media among the microprocessors in the Distributed microprocessor system is one of the suitable method. A shared Random Access Memory (RAM) technique using an arbiter that needs simple hardware and no external clock is presented. The arbiter consists of CONTROLLER and SCANNER, CONTROLLER receives shared memory request signal from microprocessor and sends grant or wait signal back to the microprocessor according to a command from SCANNER which schedules shared memory accessing. The proposed system can be used with 4 Z-80 microprocessors but can be increased up to 6 microprocessors and can be used with any distributed system on any given priority basis which requires an interprocessor communication at a rate of less than 58 Kilobytes/second. The microprocessor in the system need not be identical but only requires to have wait state and fetch state indicator. The proposed distributed system has many applications and is good for small to medium scale real time control applications.