One recent approach to build highly scalable and robust networked virtual environments (NVEs) is by using peer-to-peer overlay networks. Voronoi-based Overlay Network (VON) has been proposed that promises to maintain high overlay topology consistency in a bandwidth-efficient manner. However, the initial proposal requires all nodes to connect directly with their relevant neighbors (the direction-connection model), this limits the number of neighbors that may appear within the area of interest (AOI) of a given node. A new forwarding model for VON is proposed in this paper to solve this problem by requiring connection with only the nearest neighbors (called enclosing neighbors), and propagate position updates to other interested nodes by message forwarding. This way, AOI may be more flexibly expanded and different bandwidth capacities may be more efficiently utilized at the expense of increased latency. CR Categories and Subject Descriptors: C.2.1 [COMPUTERCOMMUNICATION NETWORKS]: Networ...