In the context of Variational Data Assimilation, it is essential to ensure good dynamical and physical balance in the initial conditions. This in order to produce improved precipitation forecast and also to adequately assimilate precipitation related data for instance. We examined the use of balanced divergent wind increments together with moist processes directly within the definition of the control variables for variational analysis. Basic experiments showing the behavior of the minimization and analysis increment spatial structure will be shown at the conference using the current Limited-Area 3D-Var code under development at the Meteorological Service of Canada.