Setting Your Location Preferences - Google Android 3.0 User Manual

Starting Android the first time

Setting your location preferences

AUG-3.0-100
Google's location service uses the Wi-Fi and mobile data networks near you to
make your approximate location available to your apps. This location information
can make finding your precise location by GPS much faster; it can also provide
your location to apps when GPS isn't available.
When you use Google's location service, Google collects data about your location
and local networks, without associating the information it gathers with you or your
Google Account, to improve the service.
You can also choose whether to use your location in your Google Search results and
other Google services.
You can change these settings after setup; see "Location & security settings" on
page 127.
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Android User's Guide