Space time network coding (STNC) is a recently proposed time-division multiple-access (TDMA)-based cooperative relaying scheme for multi-relay wireless systems, which can achieve full diversity order with low transmission delay by taking advantage of the concepts of network coding and distributed space time coding. However, STNC does not fully exploit the benefit of the broadcast nature of wireless channels, since it only allows relays to receive signals from the sources. To explore the potential capacity of STNC-based systems, in this paper, we propose a new cooperative relaying scheme, termed space-time network coding with overhearing relays (STNC-OR), by allowing each relay to collect the signals transmitted from not only the sources but also its previous relays. Then, we derive some explicit expressions for the outage probability and symbol error rate (SER) for STNC-OR with decode-and-forward relaying over independent non-identically distributed (i.n.i.d) Rayleigh fading channels. For comparison, we also derive the explicit expression of the outage probability for STNC. To further improve the performance of STNC-OR, we investigate the effect of relay ordering on the performance of STNC-OR and then present the optimal relay ordering algorithm. Further, a suboptimal relay ordering is also designed to reduce the complexity. Extensive simulation and numerical results are presented finally to validate our theoretical analysis. It is shown that the proposed STNC-OR achieves much lower outage probability and SER than STNC and traditional pure TDMA relaying schemes.