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IP tracking sites provide some information about the location of the given IP address. How do they do so?

I think the world's IP addresses are given to ISPs according to geographical areas. Who gives those IP addresses to ISPs?

I mean is there a single DHCP server on the Internet to give addresses to all the ISPs or what?

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  • Question about application-layer-protocols (DNS, DHCP,etc., all protocols above OSI layer-4) and applications, are explicitly off-topic here. You may be able to ask this question on Server Fault. – Ron Maupin♦ Jan 26 '16 at 16:56
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IP addresses are assigned by Regional Internet Registries (RIRs) and Local Internet Registries (LIRs). Where the address block came from has ZERO influence on where it's actually used.

GeoIP databases are built from a number of sources, but always boil down to some measure of "educated guess." The only person who knows 100% where an address is on the planet is the person using it. ISPs have a good idea ("service address" for any fixed line service, eg. DSL) but they rarely share that information, and even more rarely keep that information up-to-date.

(Google "ARIN" and "RIPE")

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