Due to the rapid growth in the number of vehicles on the street, traffic problems are bound to exist. Hence, implementation of Intelligent Transportation Systems (ITS) to obtain traffic information from roads by Automatic Vehicle Identification (AVI) is becoming an urgent necessity. The Radio Frequency Identification (RFID) Technology can be used for AVI to collect the traffic information in real-time from roads by getting the vehicles ID from RFID readers. This thesis tackles the problem of designing Vehicle Location System (VLS), the proposed system consists of a passive RFID tags on vehicles, RFID reader, reader's antenna, wireless communication with a Central Computer System (CCS) and commanding software (RFID middleware and database structure), also VLS applications, SMS server and website. The designed system controls, manages and monitors the performance of RFID readers. It also filters and stores the information in a suitable form to be easily used in the application system and website. The system implemented by using Rifidi Platform as simulator for RFID system and VLS is programmed by Visual Basic 2010. The VLS is composed of installing of two RFID readers in traffic intersections; each reader has four antennas, for monitoring all entries and exits of the intersection. The VLS used the gathered data from traffic intersections RFID readers in many applications including the following: location of vehicles in intersections at any time, path and orientation of vehicle in intersections, numbers and vehicles ID passed in each intersection at any time, estimate the traffic congestion situation in roads and intersections through SMS server and websites, drawing path of vehicles within VLS region on map, monitoring illegal and stolen vehicles real-time and tracking certain vehicle color.