A method and apparatus for assigning a set of region-based voltage drop budgets to an integrated circuit is provided. Further, a method for partitioning an integrated circuit into optimal voltage drop regions includes analyzing the integrated circuit for worst-case voltage drop data. The worst-case voltage drop data is used to partition the integrated circuit into a set of voltage drop regions, wherein each voltage drop region is assigned a region-based voltage drop budget. The region-based voltage drop budget assigned to a particular voltage drop region is based on a worst-case voltage drop experienced by that voltage drop region.