You could accomplish this with much less complexity if you add a few buttons to facilitate the movement from one listview to another. For instance, the user could select the item to move, click a button, and have the selection moved over and the DB updated.
This very rough diagram depicts what I'm trying to describe.
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An application I am working with has two listview controls. Items are added runtime from the database when form load. It requires a mechanism which allow user to drag item from a listview and drop in another listview. In code behind it should update the database.