diff --git a/src/browser/Decorations/ColorZoneStore.ts b/src/browser/Decorations/ColorZoneStore.ts
new file mode 100644
index 00000000..c5823234
--- /dev/null
+++ b/src/browser/Decorations/ColorZoneStore.ts
@@ -0,0 +1,94 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { IInternalDecoration } from 'common/services/Services';
+import { IDecorationOverviewRulerOptions } from 'xterm';
+
+export interface IColorZoneStore {
+  readonly zones: IColorZone[];
+  clear(): void;
+  addDecoration(decoration: IInternalDecoration): void;
+  /**
+   * Sets the amount of padding in lines that will be added between zones, if new lines intersect
+   * the padding they will be merged into the same zone.
+   */
+  setPadding(padding: { [position: string]: number }): void;
+}
+
+export interface IColorZone {
+  /** Color in a format supported by canvas' fillStyle. */
+  color: string;
+  position: 'full' | 'left' | 'center' | 'right' | undefined;
+  startBufferLine: number;
+  endBufferLine: number;
+}
+
+export class ColorZoneStore implements IColorZoneStore {
+  private _zones: IColorZone[] = [];
+  public get zones(): IColorZone[] { return this._zones; }
+
+  private _linePadding: { [position: string]: number } = {
+    full: 0,
+    left: 0,
+    center: 0,
+    right: 0
+  };
+
+  public clear(): void {
+    this._zones.length = 0;
+  }
+
+  public addDecoration(decoration: IInternalDecoration): void {
+    if (!decoration.options.overviewRulerOptions) {
+      return;
+    }
+    for (const z of this._zones) {
+      if (z.color === decoration.options.overviewRulerOptions.color &&
+          z.position === decoration.options.overviewRulerOptions.position) {
+        if (this._lineIntersectsZone(z, decoration.marker.line)) {
+          console.log('intersects, skip');
+          // this._addLineToZone(z, decoration.marker.line);
+          return;
+        }
+        if (this._lineAdjacentToZone(z, decoration.marker.line, decoration.options.overviewRulerOptions.position)) {
+          this._addLineToZone(z, decoration.marker.line);
+          console.log('adjacent, add');
+          return;
+        }
+      }
+    }
+    // TODO: Track zones in an object pool to reduce GC
+    this._zones.push({
+      color: decoration.options.overviewRulerOptions.color,
+      position: decoration.options.overviewRulerOptions.position,
+      startBufferLine: decoration.marker.line,
+      endBufferLine: decoration.marker.line
+    });
+  }
+
+  public setPadding(padding: { [position: string]: number }): void {
+    console.log('padding', padding);
+    this._linePadding = padding;
+  }
+
+  private _lineIntersectsZone(zone: IColorZone, line: number): boolean {
+    return (
+      line >= zone.startBufferLine &&
+      line <= zone.endBufferLine
+    );
+  }
+
+  private _lineAdjacentToZone(zone: IColorZone, line: number, position: IColorZone['position']): boolean {
+    return (
+      (line >= zone.startBufferLine - 1 - this._linePadding[position || 'full'] * 2) &&
+      (line <= zone.endBufferLine + 1 + this._linePadding[position || 'full'] * 2)
+    );
+  }
+
+  private _addLineToZone(zone: IColorZone, line: number): void {
+    zone.startBufferLine = Math.min(zone.startBufferLine, line);
+    zone.endBufferLine = Math.max(zone.endBufferLine, line);
+  }
+}
diff --git a/src/browser/Decorations/OverviewRulerRenderer.ts b/src/browser/Decorations/OverviewRulerRenderer.ts
index 1407f4bb..8e55dec5 100644
--- a/src/browser/Decorations/OverviewRulerRenderer.ts
+++ b/src/browser/Decorations/OverviewRulerRenderer.ts
@@ -3,6 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
+import { ColorZoneStore, IColorZoneStore } from 'browser/Decorations/ColorZoneStore';
 import { addDisposableDomListener } from 'browser/Lifecycle';
 import { IRenderService } from 'browser/services/Services';
 import { Disposable } from 'common/Lifecycle';
@@ -33,6 +34,7 @@ export class OverviewRulerRenderer extends Disposable {
   private readonly _canvas: HTMLCanvasElement;
   private readonly _ctx: CanvasRenderingContext2D;
   private readonly _decorationElements: Map<IInternalDecoration, HTMLElement> = new Map();
+  private readonly _colorZoneStore: IColorZoneStore = new ColorZoneStore();
   private get _width(): number {
     return this._optionsService.options.overviewRulerWidth || 0;
   }
@@ -40,6 +42,7 @@ export class OverviewRulerRenderer extends Disposable {
 
   private _shouldUpdateDimensions: boolean | undefined = true;
   private _shouldUpdateAnchor: boolean | undefined = true;
+  private _lastKnownBufferLength: number = 0;
 
   private _containerHeight: number | undefined;
 
@@ -84,6 +87,11 @@ export class OverviewRulerRenderer extends Disposable {
     this.register(this._bufferService.buffers.onBufferActivate(() => {
       this._canvas!.style.display = this._bufferService.buffer === this._bufferService.buffers.alt ? 'none' : 'block';
     }));
+    this.register(this._bufferService.onScroll(() => {
+      if (this._lastKnownBufferLength !== this._bufferService.buffers.normal.lines.length) {
+        this._refreshColorZonePadding();
+      }
+    }));
   }
   /**
    * On dimension change, update canvas dimensions
@@ -140,6 +148,17 @@ export class OverviewRulerRenderer extends Disposable {
     drawX.right = drawWidth.left + drawWidth.center;
   }
 
+  private _refreshColorZonePadding(): void {
+    const nonFullPadding = Math.ceil(this._bufferService.buffers.active.lines.length / (this._canvas.height - 1) * (drawHeight.full / 2));
+    this._colorZoneStore.setPadding({
+      full: Math.ceil(this._bufferService.buffers.active.lines.length / (this._canvas.height - 1) * (drawHeight.full / 2)),
+      left: nonFullPadding,
+      center: nonFullPadding,
+      right: nonFullPadding
+    });
+    this._lastKnownBufferLength = this._bufferService.buffers.normal.lines.length;
+  }
+
   private _refreshStyle(decoration: IInternalDecoration): void {
     if (!decoration.options.overviewRulerOptions) {
       this._decorationElements.delete(decoration);
@@ -151,7 +170,7 @@ export class OverviewRulerRenderer extends Disposable {
       /* x */ drawX[decoration.options.overviewRulerOptions.position!],
       /* y */ Math.round(
         (this._canvas.height - 1) * // -1 to ensure at least 2px are allowed for decoration on last line
-      (decoration.options.marker.line / this._bufferService.buffers.active.lines.length) - drawHeight[decoration.options.overviewRulerOptions.position!] / 2
+        (decoration.options.marker.line / this._bufferService.buffers.active.lines.length) - drawHeight[decoration.options.overviewRulerOptions.position!] / 2
       ),
       /* w */ drawWidth[decoration.options.overviewRulerOptions.position!],
       /* h */ drawHeight[decoration.options.overviewRulerOptions.position!]
@@ -164,6 +183,7 @@ export class OverviewRulerRenderer extends Disposable {
     this._canvas.style.height = `${this._screenElement.clientHeight}px`;
     this._canvas.height = Math.round(this._screenElement.clientHeight * window.devicePixelRatio);
     this._refreshDrawConstants();
+    this._refreshColorZonePadding();
   }
 
   private _refreshDecorations(): void {
@@ -171,7 +191,9 @@ export class OverviewRulerRenderer extends Disposable {
       this._refreshCanvasDimensions();
     }
     this._ctx.clearRect(0, 0, this._canvas.width, this._canvas.height);
+    this._colorZoneStore.clear();
     for (const decoration of this._decorationService.decorations) {
+      this._colorZoneStore.addDecoration(decoration);
       if (decoration.options.overviewRulerOptions && decoration.options.overviewRulerOptions.position !== 'full') {
         this._renderDecoration(decoration);
       }
@@ -181,6 +203,7 @@ export class OverviewRulerRenderer extends Disposable {
         this._renderDecoration(decoration);
       }
     }
+    console.log('zones', this._colorZoneStore.zones);
     this._shouldUpdateDimensions = false;
     this._shouldUpdateAnchor = false;
   }