The localization is one of the most important issues for mobile robot. This paper describes a novel localization system for the development of a location sensing network. The system comprises wirelessly controlled infrared landmarks and an image sensor which detects the pixel positions of infrared sources. The proposed localization system can operate irrespective of the illumination condition in the indoor environment. We describe the operating principles of the developed localization system and report the performance for mobile robot localization and navigation. The advantage of the developed system lies in its robustness and low cost to obtain location information as well as simplicity of deployment to build a robot location sensing network. Experimental results show that the developed system outperforms the state-of-the-art localization methods.