An upper bound on the rate-distortion function for discrete ergodic sources with memory is developed by partitioning the source sample space into a finite number of disjoint subsets and bounding the rates for each subset. The bound depends only on the mean vectors and covariance matrices for the subsets and is easy to compute. It is tighter than the Gaussian bound for sources that exhibit clustering of either the values or covariances of successive source outputs. The bound is evaluated for a certain class of pictorial data using both one-dimensional and two-dimensional blocks of picture elements. Two-dimensional blocks yield a tighter bound than one-dimensional blocks; both result in a significantly tighter bound than the Gaussian bound.