In this paper, we propose a system named Azim that provides service based on both location and direction, which uses potion estimation method based on azimuth data. In this system, a user?s position is estimated by having the user point to and measure azimuths of several markers or objects whose positions are already known. Because the measurements are naturally associated with some degree of error, the user?s position is calculated as a probability distribution. Since both the user?s position and azimuth data are obtained in this method, both sources of data are used to realize more advanced services such as identifying the object pointed to by a user. The proposed system utilizes a wireless LAN for supporting these advanced services. Finally, a prototype system was implemented using a direction sensor that combines a magnetic compass and accelerometer, and we exemplify the usefulness of our approach through an experiment.