Distributed systems are becoming more and more important. Technically spoken, the sharing of system resources (Hardware (H/W) or Software (S/W)) is one important motivation in distributed systems. Therefore, a new programming paradigm for the design and implementation of distributed systems at which resources can be easily detected and used immediately (i.e. plug and play) appeared. This service paradigm simplifies the configuration and setup for devices in computer networks, such that existing and future services work with one another in a robust, scalable, and flexible manner. The developed system (SJLS) is a multi-client multi-server distributed system working on LAN, which has a dynamic nature that enables services to be added or withdrawn from federated groups of services (devices and software components) according to demand or changing requirements by the group using the system. To do so three components are needed: Server (the most important part of the system, each server contains one or more service provider that is responsible for offering services either S/W or H/W), Lookup service (the core component of the system, in which services registered. It contains database called the Lookup table database to keep services available in the system), and Client (the part of the system that generates requests for services). These components communicate with each other by service protocols using Java programming language. The created system support security level constructed by enforcement of the security properties already present in Java in addition to providing new security properties that ensures: authenticity between server and lookup service(server security), authenticity and authority between client and lookup service(client security), and authenticity between client and server (client server security). SJLS provides Leasing Interface, which defines a way of allocating and freeing resources using a renewable, duration-based module. It is developed to be reliable by providing a consistent backup copy of the lookup table. Finally, to show the capabilities of SJLS, it has been applied on a LAN that consists of five nodes three of them are Pentium 3 and the other two are Pentium 4 for testing purposes.