As mobile systems (such as laptops and mobile telephones) continue growing, navigation assistance and location-based services are becoming increasingly important. Existing technology allow mobile users to access Internet services (e.g. email and web surfing), simple multimedia services (e.g. music and video clips), and make telephone calls. However, the potential of advanced multimedia services has not been fully developed, especially multimedia for navigation or location based services. At Purdue University, we are developing an image database, known as LAID, in which every image is annotated with its location, compass heading, acquisition time, and weather conditions. LAID can be used to study several types of navigation problems: A mobile user can take an image and transmit the image to the LAID sever. The server compares the image with the images stored in the database to determine where the user is located. We refer to this as the "forward" navigation problem. The second type of problem is to provide a "virtual tour on demand". A user inputs a starting and an ending addresses and LAID retrieves the images along a route that connects the two addresses. This is a generalization of route planning. Our database currently contains over 20000 images and covers approximately 25% of the city of West Lafayette, Indiana.