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Least mean squares (LMS) adaptive algorithms are attractive for distributed environment parameter estimation problems in a smart city due to the benefits of cooperation, adaptation, and rapid convergence. To obtain a reliable estimate of the network-wide parameter vector, local results can be further fused by intermediate agents in a distributed incremental way. In this paper, we propose an intelligent variable step size incremental LMS (VSS-ILMS) algorithm to solve the dilemma between fast convergence rate and low mean-square deviation (MSD) in conventional incremental LMS (ILMS) algorithms. The main idea behind our proposal is that the local step-size is adaptively updated by minimizing the MSD in every iteration, where Tikhonov regularization and time-averaging estimation methods are adopted. A theoretical analysis of proposed algorithm is presented in terms of mean square performance and mean …