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The segmentation of images into meaningful and homogenous regions is a key method for image analysis within applications such as content based retrieval. The watershed transform is a well established tool for the segmentation of images. However, watershed segmentation is often not effective for textured image regions that are perceptually homogeneous. In order to segment such regions properly, the concept of the "texture gradient" is introduced. Texture information and its gradient are extracted using a novel nondecimated form of a complex wavelet transform. A novel marker location algorithm is subsequently used to locate significant homogeneous textured or non textured regions. A marker driven watershed transform is then used to segment the identified regions properly. The combined algorithm produces effective texture and intensity based segmentation for application to content based image retrieval.