In this paper, we propose an efficient clustering technique to solve the problem of clustering in the presence of obstacles. The proposed algorithm divides the spatial area into rectangular cells. Each cell is associated with statistical information that enables us to label the cell as dense or non-dense. We also label each cell as obstructed (i.e. intersects any obstacle) or non-obstructed. Then the algorithm finds the regions (clusters) of connected, dense, non-obstructed cells. Finally, the algorithm finds a center for each such region and returns those centers as centers of the relatively dense regions (clusters) in the spatial area.