The present invention provides methods and apparatus for determining the location of an apparatus in a wellbore. The method includes lowering the apparatus with a conveying member and measuring a parameter associated with the conveying member. Thereafter, the measured parameter is used to determine the location of the apparatus as well as other conditions in the wellbore. The apparatus includes a conveying member operatively connected to an object released downhole. The apparatus may also include a dispensing apparatus coupled to one end of the conveying member. Preferably, the conveying member is a fiber optics line capable of transmitting optical signals. Other types of conveying members include a wire, a tube, and a cable. Additionally, a sensor may be disposed on the object and connected to the conveying member.