In this paper, we propose a novel P2P cooperative proxy cache system using an individual-based model. We borrow the idea from an ecological system as well as economic systems to manage the cooperative proxies through data and information exchange among individual proxies. The data flow among proxy nodes creates artificial life for the cooperative proxies. The proxy servers with artificial life can automatically configure themselves into a Virtual Proxy Graph. The aggregate effect of caching actions by individual peer proxies automatically distributes the Web document closer to the clients and balances the workload. Our simulation results show that the proposed proxy caching scheme tremendously improves the system performance. In addition, the individual-based design model ensures the simplicity and scalability of the cache system.