Adaptive cross-region-based guided image filtering (ACR-GIF) is a commonly used cost aggregation method. However, the weights of points in the adaptive cross-region (ACR) are generally not considered, which affects the accuracy of disparity results. In this study, we propose an improved cost aggregation method to address this issue. First, the orthogonal weight is proposed according to the structural feature of the ACR, and then the orthogonal weight of each point in the ACR is computed. Second, the matching cost volume is filtered using ACR-GIF with orthogonal weights (ACR-GIF-OW). In order to reduce the computing time of the proposed method, an efficient weighted aggregation computing method based on orthogonal weights is proposed. Additionally, by combining ACR-GIF-OW with our recently proposed matching cost computation method and disparity refinement method, a local stereo matching algorithm is proposed as well. The results of Middlebury evaluation platform show that, compared with ACR-GIF, the proposed cost aggregation method can significantly improve the disparity accuracy with less additional time overhead, and the performance of the proposed stereo matching algorithm outperforms other state-of-the-art local and nonlocal algorithms.