This study proposes a voltage and reactive coordinative control strategy with distributed generator (DG) in a distribution power system. The aim is to determine the optimum dispatch schedules for an on-load tap changer (OLTC), distributed generator settings and all shunt capacitor switching on the load and DG generation profile in a day. The proposed method minimizes the real power losses and improves the voltage profile using squared deviations of bus voltages. The results indicate that the proposed method reduces the real losses and voltage fluctuations and improve receiving power factor. This paper proposes coordinated voltage and reactive power control methods that adjust optimal control values of capacitor banks, OLTC, and the AVR of DGs by using a voltage sensitivity factor (VSF) and dynamic programming (DP) with branch-and-bound (B&B) method. To avoid the computational burden, we try to limit the possible states to 24 stages by using a flexible searching space at each stage. Finally, we will show the effectiveness of the proposed method by using operational cost of real power losses and voltage deviation factor as evaluation index for a whole day in a power system with distributed generators.