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This paper presents an efficient method for the formation of voltage control areas. The proposed method considers the effect of P-V and Q-δ coupling and changes in network topology. The full Newton Raphson load flow (NRLF) Jacobian sensitivities and voltage variations under contingencies have been used for the formation of the voltage control areas. These areas have been reduced to equivalent nodes using the REI reduction technique, and the reduced network has been validated for the voltage stability analysis. The effectiveness of the method has been established on the IEEE 14-bus system and a practical 75-bus Indian system.