1. A method for automated topology formation in a dynamic distributed environment, the method comprising the steps of: configuring a master node in an active topology wherein a topology comprises nodes and intercommunciation paths between the nodes, wherein the nodes comprise one or more leaf nodes having only incoming edges thereto, one or more prime nodes having both incoming and outgoing edges, and one or more root nodes having only outgoing edges, the master node comprising an automated topology formation application, the automated topology formation application comprising a predefined topology policy definition and a representation of the active topology; receiving at the configured master node a communication from an entity, said communication including a topology event notification, the topology event notification indicating an event affecting the active topology; determining with the automated topology formation application that the topology event notification affects a topology portion of the active topology; and based on the topology event notification, modifying the representation of the affected topology portion of the active topology according to the predefined topology policy definition.