We propose a new image retrieval method based on human perceptual clustering of color images. This color clustering produces for each image a small set of representative colors which captures the color properties of the image, and a small set of sizable contiguous regions which captures the spatial geometrical properties of the image. The proposed method outperforms the traditional histogram and its improved methods not only with its richer image retrieval capabilities which cover a wider spectrum of user requirements, but also with its powerful indexing scheme which is essential to cater for large scale image databases.