We introduce an unsupervised query segmentation scheme that uses query logs as the only resource and can effectively capture the structural units in queries. We believe that Web search queries have a unique syntactic structure which is distinct from that of English or a bag-of-words model. The segments discovered by our scheme help understand this underlying grammatical structure. We apply a statistical model based on Hoeffding’s Inequality to mine significant word n-grams from queries and subsequently use them for segmenting the queries. Evaluation against manually segmented queries shows that this technique can detect rare units that are missed by our Pointwise Mutual Information (PMI) baseline.