Geolocation lookup tool / checkers is only an estimate of where the IP address may be located. The data come from a few IP-Based geolocation providers, and their accuracy varies depending on how quickly they update their database when changes occur. Since many Internet users are getting their dynamic IP address from their ISP, and most ISPs serve their customers in multiple regions causing geolocation lookup to be accurate to the region they serve.

For example, AT&T in the United States serve their customers in entire USA and the accuracy may be limited to the Country level. Other ISPs may be serving smaller areas, and some ISPs create subnetworks to serve their customers in smaller regions. For this reason, the IP-based geolocation will be about 99% accurate at the country level while the accuracy of State and City may be at much less accurate level somewhere around 50% range.

For reference, here are the geolocation databases or sources according to tier (accuracy):

Tier 1: Main database of the IP Registrar: USA:Arin | EU:Ripe | Latin America:LACNIC | Africa:AFRICANET

Tier 2: Geolocation sites that use info from these major databases: Google IP Geo, Maxmind, IP2location, etc.

Tier 3: Small IP geosites/databases of smaller sites like get their information from main Geo sites like Maxmind, IPlocation, etc. and they usually go for the free or cheapest plan and this usually does not have the latest geo updates, which then causes the confusion.

The idea is that, Tier 1 databases do not auto updated their geolocation database, so if a proxy provider purchases a subnet (current owner), they are responsible in getting in touch with Tier 1 main databases to update their database with the subnet's current / latest geolocation.

Now then, the Tier 2 databases sometimes automatically update their geolocation databases based on Tier 1's databases, while also providing the owners of the IP range the possibility to update the geolocation of a subnet if needed but these changes can take a couple of days.

Lastly, the Tier 3 databases rely fully on Tier 2 databases' geolocation information, so as you can see, if a provider fails to reach out to Tier 1 database / Tier 2 database to update a geolocation of a subnet, then it's almost a given that Tier 3 databases will show inaccurate or outdated information of an IP subnet, not to mention that the changes to Tier 3 databases can sometimes take a weeks or months.

However, there are databases like Google IP database IPDB that no longer allows for the owner of the IP range to update the geo (proxy provider). They rely mainly on their own tracking / algorithm to determine the geolocation for each IP so that is totally out of a proxy provider's control, but that is usually aligned with the Tier 1 databases.
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