Further research on the target locating technology and system exploitation based on the GPS technology is made in this paper, and the locating model based on the GPS technology and the orientation terminal posture gaining model as well as its algorithm based on digital compass are established. On this basis, this paper puts forward a solution to the target locating measurement and controlling system based on GPS and digital compass. The system adopts the structure of the host computer and the client computer: the client computer is the hardware realization of target locating system and also can be operated separately; the host computer monitors the client computer remotely. The system can directly get posture information, with advantages of simple structure, upstanding stability, low price and so on, and can satisfy the function of locating system. The client computer passed through the high and low temperature test, resistance vibration test, electromagnetic compatibility test and so on. In the functional testing, the automatic alignment precision of the system attains to and manual alignment precision attains to , completely match the practical requirements.