Various approaches of clustering based enhancement of peer-to-peer systems have resulted in significant performance boost. One of the promising techniques is termed as distributed binning. Combined with one hop lookup services, the proposed hierarchical clustering aims to provide finer clustering towards reducing routing stretch while maintaining high scalability and acceptable overhead. The clustering schemes can further be exploited in constructing a topology aware overlay structure. Such overlay satisfies not only general applications taking advantage of its decentralized and fault-tolerant nature, but also those which favors locality over distant nodes.