In the growing field of collective robotics, spatial co-ordination between robots is often critical and usually achieved via local relative positioning sensors. We believe that range and bearing sensing, based on infrared technology, has the potential to fulfil the strict requirements of real-world collective robots. These requirements include: small size, light weight, large range, high refresh rate, immunity against tilting and misalignment, immunity against ambient light changes, and good range and bearing accuracy. Currently, there are no range and bearing systems that have been designed to cope with such strict requirements. This paper presents a custom range and bearing system, based on a novel cascaded filtering technology, complemented by hybrid infrared/Radio Frequency (RF) communication, which has been designed specifically to meet all these expectations. The system has been characterised and tested, proving its viability.