Indoor localization becomes a demand that comes into prominence day by day. Although extensively used outdoor location systems have been proposed, they can not operate in indoor applications. Hence new investigations have been carried on for accurate indoor localization in the last decade. In this thesis, a new indoor location system, that aims to locate an entity within an accuracy of about 2 cm using ordinary and inexpensive off-the-shelf devices, has been proposed and an implementation has been applied to evaluate the system performance. Therefore, time of arrival measurements of acoustic signals, which are binary phase shift keying modulated Gold code sequences using direct sequence spread spectrum technique, are done. Direct sequence-code division multiple access is applied to perform simultaneous accurate distance measurements and provides immunity to noise and interference. Two methods have been proposed for the location estimation. The first method takes the average of four location estimates obtained by trilateration technique. In the second method, only a single robust position estimate is obtained using three distances while the least reliable fourth distance measurement is not taken into account. The system performance is evaluated at positions from two height levels using two sets of variables determined by experimental results. The precision distributions in the work area and the precision versus accuracy plots depict the system performance for different sets of variables. The proposed system provides location estimates of better than 2 cm accuracy within 99% precision. Eventually, created graphical user interface provides a user friendly environment to adjust the parameters.