Abstract: Smartphones and other vehicular sensors equipped with GPS and wireless networking capabilities, are becoming ubiqui- tous in transportation systems. They provide us with op- portunities to gather timely information about road traffic conditions, fuse (assimilate) it with traffic ow models to improve upon the accuracy of these models, and hence supply valuable information for real-time transportation deci- sion making. Macroscopic traffic flow models are described by systems of partial differential equations (PDEs), which are usually only solved numerically. Adaptive moving mesh methods have shown promise in handling high variability of the spatio-temporal features (e.g. shocks and discontinu- ities) in model's solutions. We propose a novel low-overhead strategy to adaptively select observation sites in real time, by relying on informa- tion from the adaptive moving mesh of the numerical solver of the underlying PDEs. The idea is to place more of the limited observational resources to locations of higher vari- ability in the numerical solution. We incorporate our strat- egy into a particle filter based data assimilation framework, and compare it with the strategy of gathering and assimilat- ing measurements from evenly spaced observation sites. We experimentally show that our strategy reduces the relative error by up to 53% in estimating vehicle density on a road during phantom jams and traffic jams due to bottlenecks. Keywords traffic prediction, adaptive observation, Helbing's model, da- ta assimilation