Deployment of low power picobasestations within cellular networks can potentially increase both capacity and coverage. However, such deployments require efficient frequency allocation schemes for managing interference from the pico and macro basestations that are located within each other’s transmission range. Partitioning the available frequencies between the various basestations avoids the problem of interference, but can lead to inefficient spectrum usage. In this paper, we introduce a distributed frequency allocation scheme that sh ar es frequencies between macro and picobasestations, and guarantees a minimum average throughput to users. The scheme seeks to minimize the total number of frequencies needed to honor the minimum throughput requirements. We evaluate our scheme using detailed simulations and show that it performs on par with the centralized optimum allocation. Moreover, our proposed scheme outperforms a static frequency reuse scheme and the centralized optimal partitioning between the macro and picobasestations