An improved locator system is provided which transmits digital and analog information over an electromagnetic field that is radiating from an underground source. The locator system includes a transmitter that modulates its output signal by turning its output signal on and off in response to a sequence of digital words. The transmitter also modulates an analog signal onto the transmitted signal. The modulated analog signal can include an audio frequency or voice signal. The improved locator system also includes a receiver that senses and detects the transmitted digital or analog signal impressed on the radiated electromagnetic field. The receiver also demodulates the transmitted audio frequency signal and provides an audio output signal to an operator.