The source localization in shallow water is beset with problems arising from the presence of a large number of correlated multipaths. Nevertheless, given a complete knowledge of the water channel it is definitely possible to localize a source. A complete knowledge of the channel, however, is rarely available under most practical conditions. A new approach is proposed wherein the bottom reflection coefficients are not required; hence the bottom conditions need not be known. Further, because of the use of signal subspace for localization, the proposed approach is robust against the background noise (−20 dB) and channel depth uncertainty (10λ). All these nice features of the proposed approach are possible only when the array size is large (≳40 sensors).