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This paper introduces a novel approach for word segmentation in OCR system. Segmentation is one of the substantial subprocesses of the OCR system. The meaning of the word can be changed if segmented word is not correct. An approach of segmentation is formulated in which textual area of image is crimped as one large window .Then large window is divided into small windows of different lines and words are segmented out of each line as sub windows to each small window. Then characters are segmented from sub-windows for recognition. The proposed word segmentation technique works efficiently for variable word spaces.