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In the literature there are several location based routing schemes available for MANET. The effective management of location information has the maximum impact on the performance of this type of routing protocols. In this paper first we have made a study of the different categories of existing location services. Then we have proposed a new location management scheme which effectively implements the major location management functions; namely location update and location query. In this scheme we have incorporated the multi-granular location information strategy. This is particularly aimed at reducing the orthogonal costs associated with location update and location query which we have clearly shown in the analysis part of this paper.