Georeferencing means that the internal coordinate system of a map or aerial photo image can be related to a ground system of geographic coordinates. The relevant coordinate transforms are typically stored within the image file (GeoPDF and GeoTIFF are examples), though there are many possible mechanisms for implementing georeferencing. The most visible effect of georeferencing is that display software can show ground coordinates (such as latitude/longitude or UTM coordinates) and also measure ground distances and areas. Doing these things with USGS GeoPDF maps requires the free TerraGo toolbar extension to Adobe Reader. In other words, Georeferencing means to associate something with locations in physical space. The term is commonly used in the geographic information systems field to describe the process of associating a physical map or raster image of a map with spatial locations. Georeferencing may be applied to any kind of object or structure that can be related to a geographical location, such as points of interest, roads, places, bridges, or buildings.
Geographic locations are most commonly represented using a coordinate reference system, which in turn can be related to a geodetic reference system such as WGS-84.
Examples include establishing the correct position of an aerial photograph within a map or finding the geographical coordinates of a place name or street address (Geocoding).
There are various GIS tools available that can transform image data to some geographic control framework, like the commercial ArcMap, PCI Geomatica, TNTmips (MicroImages,Inc) or ERDAS Imagine. One can georeference a set of points, lines, polygons, images, or 3D structures. For instance, a GPS device will record latitude and longitude coordinates for a given point of interest, effectively georeferencing this point. A georeference must be a unique identifier. In other words, there must be only one location for which a georeference acts as the reference.