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A routing mechanism for vehicular ad hoc networks (VANET), which is based on geographic location information, is presented according to its characteristics in urban environment. The algorithm reduces the number of routing hole when delivering packet through marking a section whether or not it is a hole region. Meanwhile, the node which is located in intersection area combines greedy forwarding with directional forwarding when delivering packet. This method ensures the reliability of the routing algorithm. The simulation result shows that the proposed routing algorithm is more preferable for urban environment, compared with DSR, GPSR in terms of performance index like packet delivery rate and average end-to-end delay by using network simulator NCTUns.