See Agile
Iterative and incremental development is any combination of both iterative design (or iterative method) and incremental build model for development.
Usage of the term began in software development, with a long-standing combination of the two terms iterative and incremental having been widely suggested for large development efforts. For example, the 1985 DOD-STD-2167 mentions (in section 4.1.2): "During software development, more than one iteration of the software development cycle may be in progress at the same time." and "This process may be described as an 'evolutionary acquisition' or 'incremental build' approach." In software, the relationship between iterations and increments is determined by the overall software development process.