Inthispaper,ageometry-basedpointcloudreductionmethodisproposed,andareal-timemobileaugmentedrealitysystemisexploredforapplicationsinurbanenvironments.Weformulateanewobjectivefunctionwhichcombinesthepointreconstructionerrorsandconstraintsonspatialpointdistribution.Basedonthisformulation,amixedintegerprogrammingschemeisutilizedtosolvethepointsreductionproblem.Themobileaugmentedrealitysystemexploredinthispaperiscomposedoftheofttineandonlinestages.Attheofflinestage,webuildupthelocalizationdatabaseusingstructurefrommotionandcompressthepointcloudbytheproposedpointcloudreductionmethod.Whileattheonlinestage,wecomputethecameraposeinrealtimebycombininganimage-basedlocalizationalgorithmandacontinuousposetrackingalgorithm.Experimentalresultsonbenchmarkandrealdatashowthatcomparedwiththeexistingmethods,thisgeometry-basedpointcloudreductionmethodselectsapointcloudsubsetwhichhelpstheimage-basedlocalizationmethodtoachievehighersuccessrate.Also,theexperimentsconductedonamobileplatformshowthatthereducedpointcloudnotonlyreducesthetimeconsumingforinitializationandre-initialization,butalsomakesthememoryfootprintsmall,resultingascalableandreal-timemobileaugmentedrealitysystem.