Systems and methods are described in which a tracker is attached to an object and a localizer cooperates with the tracker to generate localizer data associated with the object. A vision device generates image data associated with the object and an environment surrounding the object within a field-of-view of the vision device. A navigation computer associates a virtual object with the object； determines a position and orientation of the virtual object in a coordinate system of the localizer based on the localizer data； combines the localizer data and the image data into a common coordinate system； merges the localizer data and the image data to identify data points in the image data having coordinates located outside of the virtual object； and associates a second virtual object with the identified data points, wherein the second virtual object defines a region that is to be avoided.
