Integration of large number of electric vehicles (EVs) with distribution networks is devastating for conventional power system devices such as transformers and power lines etc. This paper proposes a methodology for management of responsive household appliances management and EVs with water-filling algorithm. With the proposed scheme, the load profile of a transformer is retained below its rated capacity while minimally affecting the associated consumers. When the instantaneous demand at transformer increases beyond its capacity, the proposed methodology dynamically allocates demand curtailment limit (DCL) to each home served by transformer. The DCL allocation takes convenience factors, load profile and information of flexible appliances into account to assure the comfort of all the consumers. The proposed scheme is verified by modeling and simulating five houses and a distribution transformer. The smart appliances such as an HVAC, a water heater, a cloth dryer and an EV are also modeled for the study. Results show that the proposed scheme performs to reduce overloading effects of the transformer efficiently and assures comfort of the consumers at the same time.