I am in the process of migrating a site to Drupal but I am having a hard time replicating one feature.

Currently, I have nodes with locations attached to them. I use the location/directory view to display the nodes in a block like this:

California (3)
New York (1)
Texas (1)
Wisconsin (1)

But I want them to display like this:

California
    Node1
    Node2
    Node3
New York
    Node1
Texas
    Node1
Wisconsin
    Node1

Basically, I need to display all values grouped by the state/providence. Is there a way to do this within the views module? Is there another module which can do this for me? If I have to code this myself, can someone point me in the right direction?

Thanks.