The problem of formation of large-scale structure is discussed within the f
ramework of the quasi-steady state cosmology (QSSC). The primary process of
creation of matter and the resulting dynamics of ejection of matter from r
egions of strong gravitational fields play a key role. To understand their
workings, a toy model is used, in which from a set of randomly distributed
creation centers a new generation of centers is created as part of an itera
tive algorithm. It is shown that the system develops clusters and voids alo
ng with filamentary structure, within a few iterations. The two-point corre
lation function and density distribution function for these simulations are
shown to reproduce the observed clustering of the large-scale structure in
the real universe.