In this paper an algorithm which derives the location of nodes based on the connectivity information i.e. which nodes are in communication range of the server node is proposed. Based on the information about known location of certain anchor nodes the distance between neighbor nodes is calculated. This paper uses only the connectivity information without any additional information such as sensing range or distance between nodes. The connectivity information updated for every finite duration (in this work 15 ms is chosen). Clustering / grouping of similar nodes can be achieved based on the region of coverage. © 2006-2016 Asian Research Publishing Network (ARPN).