Based on the observability analysis theory of nonlinear systems,the observability of underwater electric dipole tracking and positioning system under a single observation station is analyzed. And on the basis that the system is observable,the influence of electric dipole’s horizontal position,vertical depth and source intensity on the observability of the system is also analyzed. Then,the observability difference between two-station system and single station system is analyzed,as well as the influence of the distance between two stations on the system’s observability. The results show that the underwater electric dipole tracking and positioning system based on a single observation station is observable,and the observabilities of the horizontal position and vertical depth of the electric dipole are respectively related to the magnitudes of the source intensity of horizontal and vertical electric dipole. The observability of a two-station system is greater than that of a single-station system,but the distance between the two stations should be determined by the target’s electric field radiation range.