The accelerating use of Distributed Energy Resources (DERs) and new forms of loads connected in the Medium Voltage (MV) and Low Voltage (LV) networks are posing a great challenge for the Distribution System Operators (DSOs) in the near future. The bidirectional and uncertain flow of power may result in congestions at certain points in the distribution network. Consequently, assets are overloaded; voltage deviations can occur and cascading failures may take place. Therefore, the DSOs are compelled to investigate and optimize their asset investment cost by introducing smart grid functionalities in order to mitigate investments. Out of a number of alternatives, congestion management is one of the most promising strategies to deal with the network issues. Congestion management schemes have traditionally been treated in the transmission system level. But with the widespread use of Distributed Generators (DGs) and expected severe loading conditions, the management procedure will have to be applied in the distribution network as well. This paper discusses the need and possibility of congestion management in a smart distribution network.