A system and method for tracking and locating wireless tags by a wireless location system in limited and well defined areas that provides for differentiation between the well defined areas comprises transmitting identifying area information by short range transmitters, at least one short range transmitter positioned in the proximity of an entry and exit point of each well defined area. The wireless tags receive the identifying area information when in coverage range of one of the short range transmitters. The wireless tags will transmit the identifying information in the tag message. The transmission will include the last identifying information received and accepted by the wireless tag. A plurality of location receivers and/or access points are installed in or in the proximity of the well defined areas for locating the wireless tags.