The edit screen for a dynamic distribution group allows similar options to a regular distribution group, without options for ownership or membership, and with settings for rules.
Set the parameters of a dynamic distribution group using PowerShell with the cmdlet Set-DynamicDistributionGroup:
Set-DynamicDistributionGroup -Identity NewYorkUsers -IncludedRecipients MailboxUsers -ConditionalStateOrProvince "NY"
Read more about this cmdlet at https://technet.microsoft.com/en-us/library/bb123796(v=exchg.160).aspx.
