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Distributed MIMO (D-MIMO) system is one of the candidates for future wireless access networks. In this study, the spatial correlation and capacity in indoor D-MIMO system are presented. All results are from the actual channel measurements in typical indoor scenarios, including office and corridor. Based on measured data, spatial correlation coefficients between distributed transmitting antennas are analyzed. Although the literature about D-MIMO system assumes the small scale fading between distributed antennas is independent, we find that spatial correlation may still exist in specific propagation scenario. This correlation can also degrade the performance of D-MIMO system. To mitigate the impact of spatial correlation, one efficient method is to use transmitting antenna selection technique.