This paper proposes precision evaluation method for the positioning error of three-DOF translational parallel mechanism. The proposed method uses conventional CMM as metrology equipment to measure the position of end-effector. In order to obtain accurate measurement data from CMM, the transform relationship between the coordinate system of the parallel mechanism and the CMM coordinate system must be identified. For this purpose, a new coordinate referencing (or coordinate system identification) technique is presented. By using this technique accurate coordinate transformation relationships are efficiently established. According to these coordinate transformation relationships, an equation to calculate error components at any arbitrary position of the end-effector is derived. In addition, mathematical fitting models to represent the position error components in the two-dimensional workspace of the parallel mechanism are also constructed based on response surface methodology. The proposed error evaluation method proves its effectiveness through the experimental results and its application to real three-DOF parallel mechanism.