Textual cues are essential for everyday tasks like buying groceries and using public transport. To develop this assistive technology, we study the TextVQA task, i.e., reasoning about text in images to answer a question. Existing approaches are limited in their use of spatial relations and rely on fully-connected transformer-based architectures to implicitly learn the spatial structure of a scene. In contrast, we propose a novel spatially aware self-attention layer such that each visual entity only looks at neighboring entities defined by a spatial graph. Further, each head in our multi-head self-attention layer focuses on a different subset of relations. Our approach has two advantages: (1) each head considers local context instead of dispersing the attention amongst all visual entities; (2) we avoid learning redundant features. We show that our model improves the absolute accuracy of current state-of-the-art methods on TextVQA by 2.2% overall over an improved baseline, and 4.62% on questions that involve spatial reasoning and can be answered correctly using OCR tokens. Similarly on ST-VQA, we improve the absolute accuracy by 4.2%. We further show that spatially aware self-attention improves visual grounding.