Abstract: A location tracking and distance monitoring system includes a plurality of portable transponders, each portable transponder having a wireless transmitter and configured to transmit location data, a location database storing the location data transmitted by the plurality of portable transponders, wherein each portable transponder is identified as a tag with co-ordinates in the location database, a distance monitoring module comprising at least one processor and configured via computer executable instructions to access the location data from the location database, define a coverage region with a coverage radius around each tag, determine overlapping zones of the coverage regions of the tags, and generate tag clusters based on the overlapping zones. Further, an associated method and computer readable medium are provided.