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In August we announced that we were working on a new API that would provide developers with the ability to geotag tweets. Today, the Geotagging API is officially available.
s release is unique in that it's API-only which means you won't see any changes on twitter.com, yet. Instead, Twitter applications like Birdfeed, Seesmic Web, Foursquare, Gowalla, Twidroid, Twittelator Pro and others are already supporting this new functionality (go try them out now!) in interesting ways that include geotagging your tweets and displaying the location from where a tweet was posted.
It's important to note geotagging is disabled by default for all users which means you will need to opt-in in order to use it. To activate the new geotagging functionality, go to your Settings page and click "Enable Geotagging".
On the other hand, I see this as being one more way individuals can be tracked geographically (along with electronic toll records and cell phone geo records, for example) by employers, legal foes, etc.