This paper focuses on the application of low power and low frequency Received Signal Strength Indication (RSSI) based localization system. The transceiver presented will wake-up by a modulated magnetic field that is emitted from the transmitter module. This enables the receiver to have low power consumption when not in the range of the transmitter. The goal is to provide an empirical relationship between the RSSI and the relative distance between two modules. To determine the optimal settings required to reliably and consistently obtain the RSSI.