One of the important issues in the design of a mobile computing system is how to manage the real-time locations of mobile clients. In the existing commercial cellular mobile computing systems, a two-tier architecture is used. However, the two-tier architecture is not scalable and is not suitable to support the novel new mobile computing applications. Recently, a hierarchical database structure is proposed. The location databases of different cells are organized into a tree structure to facilitate the search of mobile clients. Although this architecture can distribute the update and searching workload among the location databases, it has the problem of heavy location update overhead and long search delay. This paper studies how to generate location caching for systems using tree-structured databases. An adaptive location caching generation method is proposed to calculate the optimal caching nodes to minimize the total location management cost. Simulation experiments have been conducted to justify that our proposed caching strategy can significantly reduce the location management cost.