Dynamic Region Inference, by David Pereira and John Aycock:

We present a garbage collection scheme based on reference counting and region inference which, unlike the standard reference counting algorithm, handles cycles correctly. In our algorithm, the fundamental operations of region inference are performed dynamically. No assistance is required from the programmer or the compiler, making our algorithm particularly well-suited for use in dynamically-typed languages such as scripting languages. We provide a detailed algorithm and demonstrate how it can be implemented efficiently.

A novel garbage collector that solves reference counting's cycle problems by introducing "regions", which demarcate possibly cyclic subgraphs. These regions are updated by merge and split operations that occur on pointer update and incrementally on region allocation, respectively, ie. adding a pointer to B into aggregate C merges their regions, and trying to allocate a new region first attempts to split some random candidate region by computing the local reference counts via union-find of the region's members.

Obviously dynamic regions don't share contiguous storage like their static counterparts, so "regions" here are purely a logical concept to ensure completeness of reference counting. The implementation adds two words to each object, one for pointing to the object's current region, the other for a "next" pointer for the next object in the region.

The practicality of this approach isn't clear compared to other cycle detection algorithms, and no benchmarks are provided. I haven't found any follow-up work either.