Distributed Computing is a field of computer science that studies distributed systems. A distributed system is a model in which components located on networked computers communicate and coordinate their actions by passing messages. The components interact with each other in order to achieve a common goal. Efficient file query is important to the overall performance of peer-to-peer (P2P) file sharing systems. Clustering peers by their common interests can significantly enhance the efficiency of file query. Clustering peers by their physical proximity can also improve file query performance. However, few current works are able to cluster peers based on both peer interest and physical proximity. Although structured P2Ps provide higher file query efficiency than unstructured P2Ps, it is difficult to realize it due to their strictly defined topologies. In this work, we introduce a Proximity-Aware and Interest-clustered P2P file sharing System (PAIS) based on a structured P2P, which forms physically-close nodes into a cluster and further groups physically-close and common-interest nodes into a sub-cluster based on a hierarchical topology. PAIS uses an intelligent file replication algorithm to further enhance file query efficiency.