ABSTRACT The rise of a new economic region called ISKANDAR Malaysia has great demand for high precision positioning system. By establishing ISKANDARnet, a Network-RTK positioning system in this region, precise positioning can be achieved even in real-time. The idea of this system is to model errors, especially distance-dependent errors present within a network by deploying multiple reference stations. However, there are errors that cannot totally be modelled such as multipath effects. Since the multipath effect depends on the site environment, the suitability of site for reference station installation has to be determined. Hence, this study intends to interpret multipath effects at reference stations during the establishment of ISKANDARnet. The multipath effects at each station are evaluated by numerical calculation and graphical analysis. The suitability of the location of stations will then be judged. This crucial step has yielded valuable experience in ensuring good data quality. It is an essential issue that must be considered to enable the network-based positioning works effectively, especially for development of ISKANDAR Malaysia.