Yes as previously announced by twitter the geotagging API is now live. It currently cannot be used from the web but is available Twitter applications like Birdfeed, Seesmic Web, Foursquare, Gowalla, Twidroid, Twittelator Pro. This feature enable you to add geotagging to your tweets. "Think Globally. Think Locally" they said on their blog.
To turn it on now you need to go to your account settings page on Twitter and activate it as it is only an opt-in service. Under the "Enable Geotagging" Button is the "Delete all Location" button. What this does is if you want to turn the geotargetting feature and delete your location history then this is the button you use. It is also important to note that if you decide to delete your location history it might take up to 30 minutes and there is no guarantee that it will be completely erased from all third-party applications.
The Blog further stated "It's important to note geotagging is disabled by default for all users which means you will need to opt-in in order to use it. To activate the new geotagging functionality, go to your Settings page and click "Enable Geotagging".
Read the announcement on the Twitter Blog
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