This document proposes a user-defined privacy grid system called Dynamic Grid System (DGS) to provide privacy-preserving location-based services. DGS uses a semi-trusted third party called a query server to process user requests while preserving the privacy of user locations. It divides query processing between the query server and service provider. Experimental results show DGS is more efficient than existing techniques requiring a fully-trusted third party, providing better privacy guarantees with lower communication and computation costs.