Extension field value selection based on standard field selection

Hi Folks,

Is it possible that value selection for any Standard/ Extension-field (drop down type) can be restrict to selection of any other Standard/ Extension-field.

Business Example 

My business requirements is if I select "State"(standard field) field on new lead creation screen for existing customer or a new customer then "Sales district" (extension field drop down type) should display districts from selected state only.

If State = Karnataka then Sales district should display only Karnataka state districts.

But in our current SAP C4C system it displays all Districts from India irrespective of State selection.

Thanks

Hemant Joshi