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GPS can not be used continuously for city vehicle navigation due to the loss of satellite signals by obstructions from building, trees etc. Therefore, a kind of integrated GPS/dead reckoning (DR) system of continuous positioning is developed. The operational principle of this integrated vehicle navigation system is given, then calibration of each and switching between the GPS and DR in the system are discussed, and the application of federated Kalman filtering technology to the multisensor system is studied. Finally, we advance an adaptive information fusion method to achieve optimal calibration between the GPS and DR systems. Experimental results demonstrate the effectiveness of this integrated navigation system.