Are IP addresses based on location?
IP address
An IP address serves two principal functions. It identifies the host, or more specifically its network interface, and it provides the location of the host in the network, and thus the capability of establishing a path to that host. Its role has been characterized as follows: "A name indicates what we seek. An address indicates where it is. A route indicates how to get there."[2] The header of each IP packet contains the IP address of the sending host, and that of the destination host.
IPv4
RFC 3927 defines the special address block 169.254.0.0/16 for link-local addressing. These addresses are only valid on links (such as a local network segment or point-to-point connection) connected to a host. These addresses are not routable. Like private addresses, these addresses cannot be the source or destination of packets traversing the internet. These addresses are primarily used for address autoconfiguration (Zeroconf) when a host cannot obtain an IP address from a DHCP server or other internal configuration methods.