Systems and methods for discovering and annotating geo-fences from geo-referenced data are disclosed. The systems and methods input an area of interest containing a plurality of geo-referenced points having associated labels, and divides the area interest into cells. Each cell is assigned an initial label from among the plurality of labels and hierarchical clustering is used to find clusters of cells having a common label based on a maximization of an objective function for each cell with the objective function being dependent upon favoring spatially adjacent cells having a common label and limiting overgeneralization of the common label.