Approximate substring indexing is accomplished by decomposing each string in a database into overlapping "positional q-grams", sequences of a predetermined length q, and containing information regarding the "position" of each q-gram within the string (i.e., 1^st q-gram, 4^th q-gram, etc.). An index is then formed of the tuples of the positional q-gram data (such as, for example, a B-tree index or a hash index). Each query applied to the database is similarly parsed into a plurality of positional q-grams (of the same length), and a candidate set of matches is found. Position-directed filtering is used to remove the candidates which have the q-grams in the wrong order and/or too far apart to form a "verified" output of matching candidates. If errors are permitted (defined in terms of an edit distance between each candidate and the query), an edit distance calculation can then be performed to produce the final set of matching strings.