diff --git a/lib/globals.py b/lib/globals.py
index 445328b..58c44b8 100644
--- a/lib/globals.py
+++ b/lib/globals.py
@@ -34,6 +34,8 @@ DEFAULT_LOCATION = "oymyakon"
 
 MALFORMED_RESPONSE_HTML_PAGE = open(os.path.join(STATIC, 'malformed-response.html')).read()
 
+GEOLOCATOR_SERVICE = 'http://localhost:8004'
+
 LISTEN_HOST = ""
 LISTEN_PORT = 8002
 
diff --git a/lib/location.py b/lib/location.py
new file mode 100644
index 0000000..d07979c
--- /dev/null
+++ b/lib/location.py
@@ -0,0 +1,173 @@
+"""
+All location related functions and converters.
+"""
+
+import json
+import requests
+import geoip2.database
+
+GEOIP_READER = geoip2.database.Reader(GEOLITE)
+
+def ascii_only(string):
+    "Check if `string` contains only ASCII symbols"
+
+    try:
+        for _ in range(5):
+            string = string.encode('utf-8')
+        return True
+    except UnicodeDecodeError:
+        return False
+
+
+def geolocator(location):
+    """
+    Return a GPS pair for specified `location` or None
+    if nothing can't be found
+    """
+
+    try:
+        geo = requests.get('%s/%s' % (GEOLOCATOR_SERVICE, location)).text
+    except requests.exceptions.ConnectionError as exception:
+        print "ERROR: %s" % exception
+        return None
+
+    if geo == "":
+        return None
+
+    try:
+        answer = json.loads(geo.encode('utf-8'))
+        return answer
+    except ValueError as exception:
+        print "ERROR: %s" % exception
+        return None
+
+    return None
+
+def ip2location(ip_addr):
+    "Convert IP address `ip_addr` to a location name"
+
+    cached = os.path.join(IP2LCACHE, ip_addr)
+    if not os.path.exists(IP2LCACHE):
+        os.makedirs(IP2LCACHE)
+
+    if os.path.exists(cached):
+        location = open(cached, 'r').read()
+        return location
+
+    try:
+        ip2location_response = requests\
+                .get('http://api.ip2location.com/?ip=%s&key=%s&package=WS10' \
+                        % (IP2LOCATION_KEY, ip_addr)).text
+        if ';' in ip2location_response:
+            location = ip2location_response.split(';')[3]
+            open(cached, 'w').write(location)
+            print "ip2location says: %s" % location
+            return location
+    except requests.exceptions.ConnectionError as exception:
+        return None
+
+def get_location(ip_addr):
+    """
+    Return location pair (CITY, COUNTRY) for `ip_addr`
+    """
+
+    response = GEOIP_READER.city(ip_addr)
+    country = response.country.iso_code
+    city = response.city.name
+
+    #
+    # temporary disabled it because of geoip services capcacity
+    #
+    #if city is None and response.location:
+    #    coord = "%s, %s" % (response.location.latitude, response.location.longitude)
+    #    try:
+    #        location = geolocator.reverse(coord, language='en')
+    #        city = location.raw.get('address', {}).get('city')
+    #    except:
+    #        pass
+    if city is None:
+        city = ip2location(ip_addr)
+    return (city or NOT_FOUND_LOCATION), country
+
+
+def location_canonical_name(location):
+    "Find canonical name for `location`"
+
+    location = location_normalize(location)
+    if location in LOCATION_ALIAS:
+        return LOCATION_ALIAS[location.lower()]
+    return location
+
+def load_aliases(aliases_filename):
+    """
+    Load aliases from the aliases file
+    """
+    aliases_db = {}
+    with open(aliases_filename, 'r') as f_aliases:
+        for line in f_aliases.readlines():
+            from_, to_ = line.decode('utf-8').split(':', 1)
+            aliases_db[location_normalize(from_)] = location_normalize(to_)
+    return aliases_db
+
+def load_iata_codes(iata_codes_filename):
+    """
+    Load IATA codes from the IATA codes file
+    """
+    with open(iata_codes_filename, 'r') as f_iata_codes:
+        result = []
+        for line in f_iata_codes.readlines():
+            result.append(line.strip())
+    return set(result)
+
+LOCATION_ALIAS = load_aliases(ALIASES)
+LOCATION_BLACK_LIST = [x.strip() for x in open(BLACKLIST, 'r').readlines()]
+IATA_CODES = load_iata_codes(IATA_CODES_FILE)
+
+def is_location_blocked(location):
+    return location is not None and location.lower() in LOCATION_BLACK_LIST
+
+
+def location_processing():
+
+        # if location is starting with ~
+        # or has non ascii symbols
+        # it should be handled like a search term (for geolocator)
+        override_location_name = None
+        full_address = None
+
+        if location is not None and not ascii_only(location):
+            location = "~" + location
+
+        if location is not None and location.upper() in IATA_CODES:
+            location = '~%s' % location
+
+        if location is not None and location.startswith('~'):
+            geolocation = geolocator(location_canonical_name(location[1:]))
+            if geolocation is not None:
+                override_location_name = location[1:].replace('+', ' ')
+                location = "%s,%s" % (geolocation['latitude'], geolocation['longitude'])
+                full_address = geolocation['address']
+                print full_address
+            else:
+                location = NOT_FOUND_LOCATION #location[1:]
+        try:
+            query_source_location = get_location(ip_addr)
+        except:
+            query_source_location = NOT_FOUND_LOCATION, None
+
+        country = None
+        if location is None or location == 'MyLocation':
+            location, country = query_source_location
+
+
+
+        if is_ip(location):
+            location, country = get_location(location)
+        if location.startswith('@'):
+            try:
+                location, country = get_location(socket.gethostbyname(location[1:]))
+            except:
+                query_source_location = NOT_FOUND_LOCATION, None
+
+        location = location_canonical_name(location)
+