We give the first analysis of the computational complexity of {\it coalition
structure generation over graphs}. Given an undirected graph $G=(N,E)$ and a
valuation function $v:2^N\rightarrow\RR$ over the subsets of nodes, the problem
is to find a partition of $N$ into connected subsets, that maximises the sum of
the components' values. This problem is generally NP--complete; in particular,
it is hard for a defined class of valuation functions which are {\it
independent of disconnected members}---that is, two nodes have no effect on
each other's marginal contribution to their vertex separator. Nonetheless, for
all such functions we provide bounds on the complexity of coalition structure
generation over general and minor free graphs. Our proof is constructive and
yields algorithms for solving corresponding instances of the problem.
Furthermore, we derive polynomial time bounds for acyclic, $K_{2,3}$ and $K_4$
minor free graphs. However, as we show, the problem remains NP--complete for
planar graphs, and hence, for any $K_k$ minor free graphs where $k\geq 5$.
Moreover, our hardness result holds for a particular subclass of valuation
functions, termed {\it edge sum}, where the value of each subset of nodes is
simply determined by the sum of given weights of the edges in the induced
subgraph.
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