We describe a novel method of confining carriers by deliberately creating large inhomogeneous strain patterns in a quantum well. The strain modulates the band gap to provide lateral quantum confinement for excitons. Here, we generate strain confinement in an InGaAs quantum well by reactive ion beam assisted etching through an overlying compressed pseudomorphic quaternary layer using etch masks patterned by electron beam lithography. Photoluminescence spectra of arrays of wires and dots show red‐shifted band gaps in direct evidence of lateral confinement. We compare our results to finite element calculations of the inhomogeneous strain in an InP substrate from a compressed overlayer patterned into rectangular wires.