A decentralized indirect adaptive control scheme that may be applied to both interconntected and overlapping interconnected systems is presented. With the presented scheme, indirect adaptive controllers are applied at each control station of a multi-control-station system. The adaptive controller at a given control station is designed for the subsystems connected to that station, and the controlled inputs are communicated to other selected control stations so that strong subsystem interconnections may be taken into account. The scheme is unique because key subsystem interconnections are identified and used in the controller design at each control station in order to reduce the possible detrimental effects of the interconnections. It is shown under what conditions the proposed control scheme guarantees system global stability and it is also shown that global stability limits are improved significantly by using communicated inputs in the controller design at each control station. An example is given that demonstrates the improved stability margins of the proposed scheme.