With the ubiquity of mobile devices, there has been increased interest in determining how they can be used with location-based services. These types of services work best when the device has the ability to sense its location frequently, while still maintaining enough battery life to carry out its normal daily functions. Since the life of the battery on a mobile device is already so limited, ways of preserving that energy has become an important issue. The goal of this thesis is to demonstrate that Bluetooth can assist in providing energy efficient mobile device localization. This goal is achieved through a proposed Bluetooth Location Service Discovery framework which provides an API that can be incorporated into third party applications. The API allows BlackBerry devices to use surrounding Bluetooth devices in order to make a prediction about its current location. Predictions are completed with the assistance of the K-Nearest Neighbour data mining algorithm, and can be used as an alternative to invoking the GPS. The results obtained through experiments demonstrate that the results are comparable to those obtained with GPS.