How is iPod touch determining my location accurately despite it not having GPS.
closed as off topic by Mehper C. Palavuzlar, DMA57361, Diago Sep 22 '10 at 12:06
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One way might be the detection of WLANs that are covering your current position.
A while back Google was in the news for collecting Data from unprotected WLANs. They were scanning for WiFi networks and were trying to make some kind of "map" of WLANs. That way you can send them (or other providers who offer the same service) a list of reachable WiFi networks and the try to figure out where on their map that constellation might be.
It's like looking out for landmarks (a hill, church tower, roadsign) and looking it up on a map.
BUT: AFAIK for that to happen you need access to the internet.