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This paper proposes the design of an Automatic Number Plate Recognition (ANPR) System utilizing short range wireless technologies. One of the aims of this paper is to discuss the cost and power efficiency of the proposed system while communicating information from the road side units (RSUs) to the control center using short range wireless technologies. The paper proposes the use of ZigBee (IEEE 802.15.4) to transfer information which will reduce the overall cost of the system and enables it to be developed and deployed in developing countries where cost and power are major factors in the design of any system. Furthermore, this paper also discusses the suitability of ZigBee for special outdoor systems like Intelligent Transportation Systems where wireless communication can be affected by various factors like distance between wireless modules, communication at high density traffic areas, effect of weather and interference of other radio signals on wireless communication.