Abstract— We investigate the capacity of opportunistic communication in the presence of dynamic and distributed spectral activity, i.e. when the time varying spectral holes sensed by the cognitive transmitter are correlated but not identical to those sensed by the cognitive receiver. Using the information theoretic framework of communication with causal and non-causal side information at the transmitter and/or the receiver, we obtain analytical capacity expressions and the corresponding numerical results. We find that cognitive radio communication is robust to dynamic spectral environments even when the communication occurs in bursts of only 3 − 5 symbols. The value of handshake overhead is investigated for both lightly loaded and heavily loaded systems. We find that the capacity benefits of overhead information flow from the transmitter to the receiver is negligible while feedback information overhead in the opposite direction significantly improves capacity.