A system and method for performing coarse-grained deduplication of volume regions. A storage controller detects that a first region of a first volume is identical to a second region of a second volume, wherein the first volume points to a first medium and the second volume points to a second medium. In response to detecting the identical regions, the storage controller stores an indication that the first range of the first medium underlies the second range of the second medium. Also in response to detecting the identical regions, the mappings associated with the second range of the second medium are invalidated.