One of the major weaknesses of existing peer-to-peer

(P2P) networks is that their overlay structures do not correlate to

the physical underlying network topology. As a result, the

overlays waste network resources and introduce excessive end-toend

latency for P2P applications. In this paper, we present a new

model for topology-aware overlay formation. Firstly, it clusters

nodes that are close to each other in terms of network latency and

network membership. Secondly, it discovers the underlying

topology between clusters to form an efficient overlay. The model

is self-organising and distributed without the need of global

knowledge