We define mixed fragmentation as a process of simultaneously applying the horizontal and vertical fragmentation on a relation. It can be achieved in one of two ways: by performing horizontal fragmentation followed by vertical fragmentation or by performing vertical fragmentation followed by horizontal fragmentation. The need for mixed fragmentation arises in distributed databases because database users usually access subsets of data which are vertical and horizontal fragments of global relations and there is a need to process queries or transactions that would access these fragments optimally. We present algorithms for generating candidate vertical and horizontal fragmentation schemes and propose a methodology for distributed database design using these fragmentation schemes. When applied together these schemes form a grid. This grid consisting of cells is then merged to form mixed fragments so as to minimize the number of disk accesses required to process the distributed transactions....