said by HiVolt:Is it possible for a WiFi only iPad to use the GPS chip of an iPhone to which it's tethered to by either WiFi or Bluetooth?
The short answer is yes, it does work when a Wifi only iPad is tethered to an iPhone.
When an iPad is tethered to an iPhone, a different symbol appears (a chain if you will). Based on this, it is able to use the GPS signal from the phone (Internet as well), but only if you have the Tethering/Personal Hotspot feature enabled.
You cannot (at least I haven't been able to), pair (via Bluetooth) the iPhone with an iPad without the Personal Hotspot feature (making the Wifi just as useless).