Deploying multi-satellite constellations for Earth observation requires coordinating potentially hundreds of spacecraft. With increasing on-board capability for autonomy, we can view the constellation as a multi-agent system (MAS) and employ decentralized scheduling solutions. We formulate the problem as a distributed constraint optimization problem (DCOP) and desire scalable inter-agent communication. The problem consists of millions of variables which, coupled with the structure, make existing DCOP algorithms inadequate for this application. We develop a scheduling approach that employs a well-coordinated heuristic, referred to as the Geometric Neighborhood Decomposition (GND) heuristic, to decompose the global DCOP into sub-problems as to enable the application of DCOP algorithms. We present the Neighborhood Stochastic Search (NSS) algorithm, a decentralized algorithm to effectively solve the multi-satellite constellation observation scheduling problem using decomposition. In full, we identify the roadblocks of deploying DCOP solvers to a large-scale, real-world problem, propose a decomposition-based scheduling approach that is effective at tackling large scale DCOPs, empirically evaluate the approach against other baseline algorithms to demonstrate the effectiveness, and discuss the generality of the approach.