This article has first studied the domestic and foreign satellite positioning system development condition, has analyzed the various countries satellite positioning system characteristic, and elaborated emphatically our country satellite positioning system development present situation and the future will develop. Introduced the whole world satellite positioning system main application, unifies our country's actual national condition, studied it emphatically in the vehicles monitoring, the dispatch direction application .Along with our country urban construction scale expansion, the vehicles increased day by day, the transportation management and operation and the reasonable dispatch have become widespread the matter of concern, in which rent, sell in the market in the Chinese project vehicles, because the credit system was imperfect, after the owe rent, deceived rents, buys the event which the vehicle repudiated a debt to occur now and then, the force project vehicles hiring, the sell unit installed the GPS satellite positioning system on the project vehicles to strengthen to rent the property the government. This is one measure which adopts to the current credit environment not good condition under, in certain degree had guaranteed the project vehicles rent, sell the market the credit .Global positioning system from military transfers civilly after, the GPS technology applies in the mobile target monitoring has the superiority which other monitoring method is unable to compare, used the GPS technology after each kind of vehicles implementation monitoring, the dispatch management is a new research hot spot Had understood in the present market the vehicles monitoring equipment main function and the good and bad points, proposed based on the ARM embedded GPS positioning system design proposal. The entire design is divided into the software and the hardware two parts, in which hardware part mainly completes the equipment the correspondence as well as accepts with the transmission to the implementing agency control signal. Through the software way control signal receive, the recognition, the code, the transmission, the execution and so on operate .This design to use Tristar Corporation ARM9 specifically essence microprocessor S3C2440A to take the control center, and has inserted the Linux operating system, causes the application procedure the development to be independent above the hardware, enhanced the development speed, has increased the system expansion ability .This article detailed elaboration from the overall design software and hardware coordination design complete process. From the hardware shaping to the component use, from the software master control program compilation to the operating system driver compilation, has confirmed this design superiority and the feasibility. For the vehicles GPS positioning system in the vehicles monitoring, the dispatch direction application has provided the theory and the practice basis.