In this paper, we propose a new peer grouping scheme to consider locality among peers using TTL values in P2P-based IPTV systems. This scheme can select neighbor peers to minimize the number of intermediate routers between each pair of peers. Thus, it can save the network bandwidth as much as the amount of data that the reduced number of routers should transmit In addition, we have conducted various simulation experiments to show that our proposed TTL-based peer grouping scheme can outperform the conventional RTT-based grouping scheme. The experimental results show that our proposed scheme can reduce the jitter ratio as well as the number of data and control packets that all routers should transmit.