Literature indicates that frequency diversity can be utilized to compensate channel uncertainties such as multipath fading. Therefore, in this paper it is exploited for improving accuracy in locating stationary and mobile objects in the indoor environment. First, frequency diversity technique is introduced for small scale and temporal variation compensation of received signals and it is demonstrated analytically to enhance location accuracy. A novel metric is introduced in selection combining in order to achieve location accuracy through the addition of frequency diversity upon two of the available location determination schemes. The results are evaluated experimentally against the case where there is no frequency diversity for reception by using low cost wireless RF devices such as motes. An asset location tracking system is then devised to both improve accuracy and predict asset movement. Frequency diversity in terms of channel spacing of 55 MHz is evaluated and shown to provide a reduction in location determination error between 18 to 23% when compared to a system without frequency diversity. Finally, results from frequency diversity are compared against the spatial diversity techniques in terms of improvement in location accuracy, power consumption of the transmitter, and hardware and software costs.