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In managing the locations of mobile users in mobile communication systems, the distance-based strategy has been proven to have better performance than other dynamic strategies, but is difficult to implement. A simple approach is introduced to implement the distance-based strategy by using the cell coordinates in calculating the physical distance traveled. This approach has the advantages of being independent of the size, shape, and distribution of cells, as well as catering for the direction of movement in addition to the speed of each mobile terminal. An enhanced distance-based location management strategy is proposed to dynamically adjust the size and shape of location area for each individual mobile terminal according to the current speed and direction of movement. It can reduce the location management signaling traffic of the distance-based strategy by half when mobile terminals have predictable directions of movement. Three types of location updating schemes are discussed, namely, Circular Location Area, Optimal Location Area, and Elliptic Location Area. Paging schemes using searching techniques such as expanding distance search based on the last reported location and based on the predicted location, and expanding direction search are also explored to further reduce paging signal traffic by partitioning location areas into paging areas.