the author of this app says:
GPS for your WIFI iPad!
Here's how it works:
1. Turn on the Personal Hotspot on your iPhone
2. Connect your iPad to the Personal Hotspot
3. Start AirLocation on your iPhone and iPad
4. AirLocation on your iPad will now track your location based on GPS data provided by your iPhone.
Important: GPS data is transferred only between the AirLocation Apps! Other Apps wont receive any data from AirLocation.
"We've previously reported that the Wi-Fi iPad 2 gained GPS powers when tethered to an iPhone but we were wrong. You'll need an app like AirLocation to get it working properly. "
"For $0.99, you get bare-bones GPS for your Wi-Fi iPad that works as advertised. Whos in?"
"Ive personally tested the application during a 20-minute car trip to Viterbo, my town, and it really works as advertised"
"... for those of you convinced about the joys of tethering a Wi-Fi iPad, this app costs a single, solitary buck."
- Requires iOS 4.3 or later.