The initial stages of epitaxial graphene growth were studied by characterization of graphene formed in localized areas on C-face 6H-SiC substrates. The graphene areas were determined to lie below the level of the surrounding substrate and showed different morphologies based on size. Employing electron channeling contrast imaging, the presence of threading screw dislocations was indicated near the centers of each of these areas. After the graphene was removed, these dislocations were revealed to lie within the SiC substrate. These observations suggest that screw dislocations act as preferred nucleation sites for graphene growth on C-face SiC.