A new principle of grouping is proposed that is based on elements being located within a common region of space. Demonstrations analogous to Wertheimer's original displays show that this factor strongly influences perceived grouping and is capable of overcoming the effects of other powerful grouping factors such as proximity and similarity. Grouping by common region is further shown to depend on perceived depth relations, indicating that it is influenced by processes that occur after at least some depth perception has been achieved. Further demonstrations suggest that it is dominated by the smallest background area and that it can follow a hierarchical embedding scheme. It is argued that common region cannot be reduced to the effects of proximity, closure, or any other previously known factor and therefore constitutes a genuinely new principle of grouping.