Abstract: A region division approach for vehicle location and navigation is presented, which is based on GPS technique, dead reckoning (DR) and the map matching of digital road networks. In order to meet the needs ofwide applications, a region-divided model forthe vehicle location and navigation system(VLNS) is established. Based on this model, a systematic analysis of the central module, and an outline design of the VLNS are discussed on the following issues: (1) the dynamic switch of the workingmode between GPS and CDGPS (conventional differential GPS), (2) the layered map database and the dynamic compile of the layered map, and (3) the improved map matching algorithm that compensates the positioning errors of GPS and dead reckoningwith the aid of digital map. It has been proved thatwith the region division approach, the performances of the VLNSget improved. The VLNSmodel built in this paper can provide high precision application not only for local-area, but also forwide-area users