A locating system and method for accurately positioning key blanks with respect to a key cutter where the key head is clamped between opposing jaws with the key blade working edges projecting therefrom, the key head is provided with shaped recesses having at least a partially specifically shaped edge wall and wherein at least one jaw member is provided with a projection having a correspondingly shaped sidewall, the pin being positioned with respect to the clamp such that when the key blank head is abutted against the pin with the key blank edge configuration mating to the pin sidewall configuration, the key blade will project from the jaw in a proper position for engagement by either the bitting follower or bitting cutter respectively.