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Unlike conventional range queries, a range-monitoring query is a continuous query. It requires retrieving mobile objects inside a user-defined region and providing continuous updates as the objects move into and out of the region. In this paper, we present an efficient technique for real-time processing of such queries. In our approach, each mobile object is associated with a resident domain, and when an object moves, it monitors its spatial relationship with its resident domain and the monitoring areas inside it. An object reports its location to the server when it crosses over some query boundary or moves out of its resident domain. In the first case, the server updates the affected query results accordingly, while in the second case, the server determines a new resident domain for the object. This distributive approach achieves an accurate and real-time monitoring effect with minimal mobile communication and server processing costs. Our approach also allows a mobile object to negotiate a resident domain based on its computing capability. By having a larger resident domain, a more capable object has less of a chance of moving out of it and having to request a new one. As a result, both communication and server processing costs are reduced. Our comprehensive performance study shows that the proposed technique can be highly scalable in supporting location-based services in a wireless environment that consists of a large number of mobile devices.