Accurate positioning with a limited number of reference stations is challenging. Several commercial systems achieve good accuracy by increasing the system complexity. Simplifying the system and reducing the number of reference stations is highly desirable. This paper presents a coverage efficient highly integrated local positioning system. The system is optimized for minimum positioning error with maximum effective coverage area. It is highly integrated and relies on the traditional frequency modulated continuous wave (FMCW) radar to provide the position information. Starting from the hardware to the final positioning algorithm, the research provides an intensive insight into the system details. The proposed system was practically tested for reliability and accuracy. To mitigate the multipath propagation issue, the system switches between the 2.4 and 5.8 GHz industrial, scientific and medical (ISM) bands. An overall positioning precision of around 10 cm and accuracy of less than or equal to 0.39 m was achieved with a coverage area of around 48 and 24 m2 per reference station, in both outdoor and indoor conditions, respectively.