With the increase in the number of mobile users, the need for new type of services and applications is also on the rise. Particularly, a growing area of interest is to provide location dependent services to the mobile users. In this paper, we present a system that supports distributed processing of locationdependent continuous queries on distributed mobile data in a mobile environment using mobile agents. We investigate a scenario in which both the querying unit and the object being queried (target object) are capable of movement and the mobile unit is equipped with more powerful capabilities, including the storage of a small database and the capacity of data processing. Since our system deals with continuous queries, we propose a shared incremental update mechanism, which caches the results of the previously evaluated queries and avoids redundant results thereby minimizing the data traffic in wireless environment. To further reduce the data transfer we share the cached data among different queries. Our system uses mobile agents for evaluating queries, which involves data from both the server and mobile unit, and it helps in parallel processing of data and it, can efficiently track the mobile units involved in the system. The conventional query processing method like join processing of data from mobile units and server is directly applied in the mobile environment.