The essential motivations, towards an object-based approach to video coding, include possible object-based interactivity and functionality, and the elimination of blocking or mosquito artifacts that typically occur in a block-based coding scheme. In this work we present a region-based video coder which uses a segmentation map obtained from the previous reconstructed frame, thereby eliminating the need to transmit expensive shape information to the decoder. While the inspiration for this work is derived from previous work by Yokoyama et al 1,2 , there are major differences between our work and the earlier effort, in the segmentation scheme employed, the motion model, and the handling of overlapped and uncovered regions. We use an edge flow based segmentation scheme 3 , which appears to produce consistent segmentation results over a variety of natural images. Since it combines luminance, chrominance and texture information for image segmentation, it is well suited to segment real world images. For motion compensation, we choose an affine model, and use hierarchical region-matching for accurate affine parameter estimation. Heuristic techniques are used to eliminate overlapped and uncovered regions after motion compensation. Extensive coding results of our implementation are presented.