Discoverer Version 10g has overcome this problem and allows to filter the List of Values based on another parameter. This is very similar to dependent value set that we create in Oracle Apps.
In the paramter screen(shown in the screen shot below) Select Option "Filter the List of Values based on the selection conditions, then select the parameter based on which the value need to be filtered. Click OK and you are all set to filter the list based on another parameter.
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