A virtual reality (VR) includes a sparse projection system configured to generate a plurality of clusters using one or more diffractive optical elements. Each generated cluster has a unique configuration that corresponds to a unique location in a virtual mapping of a local area. The sparse projection system projects the generated clusters throughout the local area. A VR console receives a series of images of the local area from the imaging device, with at least one image includes at least one cluster. The VR console determines a location of a VR headset within the virtual mapping of the local area based at least in part on a configuration of the at least one cluster included in the series of images. Content is generated based at least in part on the determined location of the VR headset and is provided to the VR headset for presentation.
