The techniques of clustering and space transformation have been successfully used in the past to solve a number of pattern recognition problems. In this article, the authors propose a new approach to content-based image retrieval (CBIR) that uses (a) a newly proposed similarity-preserving space transformation method to transform the original low-level image space into a highlevel vector space that enables efficient query processing, and (b) a clustering scheme that further improves the efficiency of our retrieval system. This combination is unique and the resulting system provides synergistic advantages of using both clustering and space transformation. The proposed space transformation method is shown to preserve the order of the distances in the transformed feature space. This strategy makes this approach to retrieval generic as it can be applied to object types, other than images, and feature spaces more general than metric spaces. The CBIR approach uses the inexpensive "estimated" distance in the transformed space, as opposed to the computationally inefficient "real" distance in the original space, to retrieve the desired results for a given query image. The authors also provide a theoretical analysis of the complexity of their CBIR approach when used for color-based retrieval, which shows that it is computationally more efficient than other comparable approaches. An extensive set of experiments to test the efficiency and effectiveness of the proposed approach has been performed. The results show that the approach offers superior response time (improvement of 1-2 orders of magnitude compared to retrieval approaches that either use pruning techniques like indexing, clustering, etc., or space transformation, but not both) with sufficiently high retrieval accuracy.