In this paper it considers using the built-in Bluetooth in the cellphone as the positioning device; it is able from the measured RSSI (Received Signal Strength Indication) strength to locate the target or the cellphone position. From experimental measurements using Bluetooth positioning technique in various environments we measure signal fading condition and propose signal fading model; three-point localization method is then developed to determine potential target locations. We propose a specific processes, it is to generate more test points, are then exploited to choose the near points and to determine the target final location. With the processes it is possible by using Bluetooth technique to reduce the distance determination error down to 1 meter range.