The Chinese Area Positioning System (CAPS) is a new type of satellite navigation systems. The geostationary satellites for normal communication with 2 or 3 sets of inclined geostationary orbit (GEO) satellites are employed to construct a satellite navigation system. The navigation signals are constructed and disseminated on the ground, and the satellites only transfer the signals to the ground by transponders. Such a system is easy to construct. But for such a positioning system, it needs precise and accurate orbit determination of geostationary satellites. A GEO satellite is placed at an altitude of 36000km above the equator and its movement with respect to the station on the ground is very small, so it is very difficult to determine the orbit precisely. An original method for determination of satellite orbits based on pairs of combined observations is developed at the National Time Service Center, Chinese Academy of Sciences. A special ranging observation with the distance between two stations via a satellite, called pairs of combined observations, is proposed. The satellite behaves with such an observation is not a ball, but an ellipse ball. The Dilution of Precision (DOP) is much less than those methods such as the SLR observation. The advantage of pairs of combined observations is that clock offsets for all observing stations and on-bound are cancelled by the method itself, so, the accuracy and precision of orbit determination is not affected by the clock offsets and the DOP is greatly improved. The ranging signals are generated and measured on the ground, and the instrumentation errors can be determined in real time with a high accuracy. Therefore, such a system is very stable. A very high rate of the PN code is employed, a disseminated power is very low, and it can observe signals from remote stations with a lower power less than 1w. With the spread-spectrum technique, multi-stations can work at the same time and same carrier frequency. It can reach the accuracy of raging about 1 cm. The accuracy and precision of the orbit determination are very high, up to a few centimeters. The observing system with the model proposed above for the GEO satellites including 5 stations (one main station and 4 slave stations) placed in China has been set up. The combined observations were made between the main station and the slave stations. The number of combined observations for the 5 stations is 9. The observations are made per second. The observations for 8 sets of satellites are continuous, lasting for about 5 years. The results for the GEO observations show that the observation residuals of the satellite orbit determination for a 3-day solution are 4.0 cm. With the development of the method to determine the orbit based on the discussion above, it is very easy to correct the orbit with observations nearly in real time. Obviously, the method proposed by the National Time Service Center is suitable for precise orbit determination of GEO satellites in a satellite navigation system, and also it is suitable for satellite management and deep space tracking.