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The aim of this study is to combine the benefits from the ALE grid approach and the the fixed grid approach, by developing an overlapping grid formulation, where a localised ALE grid (which conforms to structural deformation) overlaps a fixed fluid grid in the background. Indeed, continuity and interaction between the fixed fluid grid and ALE fluid grid shall need to be enforced in this overlapping grid formulation. Unlike previous overlapping schemes, for example, XFEM methods that uses Lagrange multipliers [2,7] or Chimera methods [2,12] that require additional iteration between grids, it is hypothesised that a forcing feedback scheme [10,13] may be efficiently employed to model this localised and background grid continuity. It is anticipated that with this overlapping grid formulation, flow resolution surrounding the structural body may be resolved as accurately as possible and the mesh update (or even remeshing) is limited to localised, dynamic fluid grids that surrounds the structure, thus, minimising computational effort.