This paper introduces a novel bio inspired clustering algorithm called Cuckoo Search Clustering Algorithm (CSCA). This algorithm is based on the recently proposed Cuckoo Search Optimization technique which mimics the breeding strategy of the parasitic bird-cuckoo. The algorithm is further extended to a classification method, Biogeography Based Cuckoo Search Classification Algorithm (BCSCA), which is a hybrid approach of the two nature inspired metaheuristic techniques. The proposed algorithms are validated with real time remote sensing satellite image datasets. The CSCA was first tested with benchmark dataset, which yields good results. Inspired by the results, it was applied on two real time remote sensing satellite image datasets for extraction of the water body, which itself is a quite complex problem. A new method for the generation of new cuckoos has been proposed, which is used in the algorithms. The resulting algorithm is conceptually simpler, takes less parameter than other nature inspired algorithms, and, after some parameter tuning, yields very good results. The extended algorithm BCSCA is also tested on the same satellite image for identifying different land covers by classifying the image in various classes. The algorithm was successful in classifying other land cover regions like rocky, barren, urban and vegetation. We strongly feel that results can be further improved by finer tuning of the parameters. Both the algorithms use Davies-Bouldin index (DBI) as fitness function. Further exploration of suggested algorithms CSCA and BCSCA may prove them to be strong entrants in the pool of nature inspired techniques.