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The majority of today's automated vehicle location (AVL) systems use Global Positioning System (GPS) technology, which can provide position information with an accuracy of approximately 15 m. Recently, low-cost Differential GPS (DGPS) receivers, which have a positioning accuracy of approximate 2-3 m, have become available. With this increased accuracy, it is now possible to perform AVL down to specific roadway lanes. In this paper, a vehicle-lane-determining system is described, consisting of an onboard DGPS receiver that is connected with a wireless communications channel, a unique lane-level digital roadway database, a developed lane-matching algorithm, and a real-time vehicle location display. Lane-level positioning opens up the door for a number of new intelligent transportation system applications such as better fleet management, lane-based traffic measurements from probe vehicles, and lane-level navigation. The developed low-cost system has been tested on a number of roadways and has performed very well when used with accurately surveyed map data. Based on more than 100 000 s, it has correctly determined the lane 97% of the time.