A coherent file system and method of operation for a file state authority coupled to file state sub-set satellites addresses congestion and latency effects on a plurality of peer workstation clients organized in neighborhoods. Very large files are versioned and metadata recorded in a file state view determines which file blocks make up each version of a committed file. Metadata may be requested from neighboring workstations to locate desired file blocks. File block transmission is minimized to fulfill read requests only when not accessible at a workstation's local file block store.