  Location information is often used as a proxy to guarantee the performance of
a wireless communication link. However, localization errors can result in a
significant mismatch with the guarantees, particularly detrimental to users
operating the ultra-reliable low-latency communication (URLLC) regime. This
paper unveils the fundamental statistical relations between location estimation
uncertainty and wireless link reliability, specifically in the context of rate
selection for ultra-reliable communication. We start with a simple
one-dimensional narrowband Rayleigh fading scenario and build towards a
two-dimensional scenario in a rich scattering environment. The wireless link
reliability is characterized by the meta-probability, the probability with
respect to localization error of exceeding the outage capacity, and by removing
other sources of errors in the system, we show that reliability is sensitive to
localization errors. The $\epsilon$-outage coherence radius is defined and
shown to provide valuable insight into the problem of location-based rate
selection. However, it is generally challenging to guarantee reliability
without accurate knowledge of the propagation environment. Finally, several
rate-selection schemes are proposed, showcasing the problem's dynamics and
revealing that properly accounting for the localization error is critical to
ensure good performance in terms of reliability and achievable throughput.
