Firstly, the shortage of traditional detection method of traffic conditions are analyzed. Secondly, this paper proposed a new detection method of traffic conditions-virtual detector which is based on GPS/INS technology, short message service and local supervise station. By virtue of the instantaneous velocity of vehicles and precise time information are detected by virtual detector, a mathernatic model can be established, a series of important traffic condition information can be obtained, such as traffic volume, mean velocity, driving time, drive way occupancy, etc. This technology realizes the real-time and random detection of city traffic condition and offers the premise for traffic signal control system, traffic-streaming guidance system.