Maybe it is because your location is 200+ years behind the rest of the country
Hmm, I Googled this and learned something new. Below is how the iPod Touch does it, iPad should be the same.
Source: It actually uses the SSIDs and hardware addresses of any WiFi access points it finds within range, and then looks up this information in an online database. Essentially, a company known as Skyhook Wireless has driven around North America cataloguing the locations of various WiFi access points and where they're reachable from, and then put this all into a database that can be used for triangulation.
Here is a
video of how it works, flash required.
You can go to
Skyhook and update your WiFi location if you know your MAC Address. The address should be on the device.
Sorry if this is too much info, hope it helps resolve your issue.