Abstract: The present invention relates to a fixture and method for positioning and holding a gear to be machined, as for example in a ring and pinion gear set for vehicle axles. The fixture includes a base, a clamp and a locator. The base has a surface against which the gear is to be held and a bore which extends into the base from the surface of the base. The clamp is connected to the base. The locator is movably disposed in the bore of the base such that the locator is moveable between a first position wherein an end of the locator extends above the surface of the base for positioning the ring gear by aligning with a surface which defines a bore of the gear so that the clamp can be positioned to hold the ring gear and a second position to which the locator is retracted below the surface of the base so that the ring gear can be machined without interference by the locator.