Location based services and applications are buzzwords nowadays, yet they have been around for quite some time in a variety of applications. However these applications are scarce because of the high costs associated with the positioning equipment. This paper presents different options for determining location of mobile devices such as mobile phones and Pocket PCs. It describes positioning possibilities using WiFi networks, GSM networks, Bluetooth beacons and the GPS system. Furthermore, it proposes a framework for developing distributed location based applications. The paper specifies which components comprise the framework, data structures that are used for spatial data interchange and Web Services that are used for communication between components. It also describes a location aware application prototype built on top of the proposed framework. It concludes that building applications on top of the proposed framework is feasible and discusses benefits and drawbacks of this approach.