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A novel approach is proposed to enable vehicles to estimate their instantaneous position with lane-level accuracy, which is not achievable using Global Navigation Satellite Systems (GNSSs). This system can be used to enhance position-based applications such as Intelligent Transportation Systems (ITSs), including navigation and lane-level traffic guidance and warning. The system uses the carrier frequency offset (CFO) of the dedicated short-range communication (DSRC) signal, broadcast by two infrastructure beacons. The main advantages of the proposed method over other potential technologies such as radio-frequency identification (RFID) and buried loops are its simpler required infrastructure and functionality using vehicular communication platforms. Analysis of the proposed technique indicates acceptable reliability and performance. Empirical test results confirm the viability of the method.