A system and method for creating and managing snapshots. Mediums are recorded and maintained, all of which are read-only except for the most recent mediums in use by a volume. Multiple volumes may be maintained, including a first volume which points to a first medium. When a snapshot of the first volume is taken, a second medium is created that points to the first medium. The first volume is also updated to point to the second medium. The first medium becomes the underlying medium of the second medium, and lookups are performed initially on the second medium and then on the first medium if the data is not located in the second medium.