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Context-aware computing often involves tracking peoples’ location. Many studies and applications highlight the importance of keeping people’s location information private. We discuss two types of locationbased services; location-tracking services that are based on other parties tracking the user’s location and position-aware services that rely on the device’s knowledge of its own location. We present an experimental case study that examines people’s concern for location privacy and compare this to the use of location-based services. We find that even though the perceived usefulness of the two different types of services is the same, locationtracking services generate more concern for privacy than posit ion-aware services. We conclude that development emphasis should be given to position-aware services but that location-tracking services have a potential for success if users are given a simple option for turning the location-tracking off.