In this paper, we propose a location-based IP assignment protocol. We assume that a mobile host knows its current physical location; thus, this location information can be exploited to facilitate IP assignment. We divide the entire network into several disjoint and same-size cells and each cell has a coordinator to assign and maintain the available IP addresses. With location information for each host, the scheme proposed in this paper can avoid the problems of network partitions and mergers. Simulation results show the IP addresses can be fully utilized and that the control overhead and latency time are not affected by the mobility speed.