The generation of correlated photon pairs is a key to the production of entangled quantum states, which have a variety of applications within the area of quantum information. In spontaneous parametric down-conversion—the primary method of generating correlated photon pairs—the associated photon annihilation and creation events are generally thought of as being colocated: The correlated pair of photons is localized with regards to the pump photon and its positional origin. A detailed quantum electrodynamical analysis highlights a mechanism exhibiting the possibility of a delocalized origin for paired output photons: The spatial extent of the region from which the pair is generated can be much larger than previously thought. The theory of both localized and nonlocalized degenerate down-conversion is presented, followed by a quantitative analysis using discrete-volume computational methods. The results may have significant implications for quantum information and imaging applications, and the design of nonlinear optical metamaterials.