We describe our on-going efforts to construct a service infrastructure to s
upport smart environments. We characterize "fusion services," which extract
and infer useful context information from sensor data, using evidential re
asoning techniques. We specify sensing services as Bayesian networks and us
e information theoretic algorithms to optimize the resources consumed by th
e rendering of a service. We define a "Quality-of-Information" metric to ch
aracterize sensing service performance. We have implemented an infrastructu
re for supporting a dynamic set of sensors and services in a smart space. U
sing this infrastructure and an IEEE 802.11 network, we implemented a proba
bilistic indoor location system that optimizes the number of sensors consul
ted when determining the location of a user while maintaining a high degree
of accuracy.