This paper presents a new idea for incremental clustering based on decomposed Cauchy-like (deCauchy) density distribution. The algorithm is based on the metrics where the data sample is written in the form of unity orientation vector multiplied by the scalar of the data vector length. This notation offers a very clear and transparent way to calculate the orientation and length density of each sample which can be also very easily calculated recursively. The development of density as a measure of similarity follows from Cauchy density and is very similar to the typicality defined in the possibilistic clustering approach. The described incremental Cauchy clustering deals with just two tuning parameters, the first one is maximal orientation density and the second one is maximal length density. The algorithm is in on-line form to deal with data streams and evolves the model structure during the operation by adding, merging and removing the clusters. It can be very efficiently used in many different clustering problems.