As we are moving along with emerging technologies the storage of data will no longer be in our conventional single dimensional raw data. The relational data can be further identified with spatial and non-spatial relationship. This is to examine whether clustering approach has any role to play in spatial data mining. This paper explains spatial clustering under statistical method of analysis for discovering the knowledge which is encapsulated in the spatial database. This study emphasis the spatial clustering approach accomplished through algorithms such as PAM and CLARA and let us to come across the limitations of PAM method. To the end, This work ushers that spatial data mining is a promising field, with fruitful research results and carries many challenging issues.