Can I use taxonomy to do this?

Hi folks,

I'd like to use the taxonomy functionality in Drupal to automatically create a list of link separated by their category.

Something similar to what's seen here:

http://www.centercityrealty.com/index.asp?content=commercial

Is this possible?

How would one go about doing this?

So far I have a View set up that uses a list view page style and I have all of the links sorted by their category. That is close, but it still looks like a long list and the category is visible for all of them and can then be used to sort them.

I'd like for the category to show up once and be used as the heading for each section like the link above.

Thanks.