This paper presents a hardware-efficient scheme to construct sensor-based Generalized Voronoi Diagram (GVD) of an indoor environment. An architecture to construct the GVD using a prediction and correction strategy is presented. The approach is based on processing distance information from ultrasonic sensors. A feature of the proposed approach is that it does not involve operations that are expensive in hardware. Results of FPGA implementation are also presented. The design is shown to be space efficient and fits in a low-end FPGA device (with a small number of system gates). © 2007 IEEE.