First you need to install the packages:
apt-get install gpsd gpsd-clients
Then plug in your GPS if it isn't already and test that it is working and you know what device it is:
gpsd -D 5 -N -n /dev/ttyUSB0
You should see GPS stuff scroll on the screen. You may have to break out of it and try a second time to see it. If ttyUSB0 isn't correct for you, figure out which one works, you need to know.
Then configure gpsd to auto detect the device with this command:
dpkg-reconfigure -plow gpsd
Answer the questions, this where why you tested it and made sure you know the correct device.
Finally for it to start working properly for me I had to reboot and then plug the GPS in, but that may just be because I'm running it in a VM or just unlucky. So at this point if it is working, great. If not, reboot with the device unplugged and then plug it in after you login and it should start working fine.