The electrical resistivity and induced polarization (IP) methods are widely used in geological mapping, prospecting and exploration of mineral deposits, engineering geology, hydrogeology, archaeology, and geotechnical and environmental applications. Historically, these methods have formed the basis of the electrical prospecting technique. In these methods, a DC or low-frequency AC electrical current is introduced into the earth through a grounded transmitter line. The measured quantity is the electric field. However, if the earth’s resistivity or chargeability changes horizontally, this change gives rise to an anomalous magnetic field, which is studied by the magnetometric resistivity (MMR) and magnetic induced polarization (MIP) methods, respectively. Along with advantages, some shortcomings are inherent in the MMR and MIP techniques. Apparently, the main drawback of these methods is that the magnetic fields of both the transmitter line wire and ground electrodes on the surface are several orders of magnitude greater than the anomalous magnetic field response. This introduces a significant “noise” to magnetic-resistivity data. We investigate the potential of using a circular electric dipole (CED) in magnetometric resistivity techniques. It has been found that the application of a CED, instead of a conventional transmitter line, dramatically enhances the signal-to-noise ratio.