This paper presents a localization system based on the use of electric compass and tracking IR light source. Digital RGB(Red, Green, Blue)signal of digital CMOS Camera is sent to CPLD which converts the color image to binary image at 30 frames per second. CMOS camera has IR filter and UV filter in front of CMOS cell. The filters cut off above 720nm light source. Binary output data of CPLD is sent to DSP that rapidly tracks the IR light source by moving Camera tilt DC motor. At a robot toward north, electric compass signals and IR light source angles which are used for calculating the data of the location system. Because geomagnetic field is linear in local position, this location system is possible. Finally, it is shown that position error is within ${pm}1.3cm$ in this system.