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We develop and investigate a new medium access control (MAC) algorithm and protocol for ad-hoc wireless networks that employs power control spatial-reuse scheduling techniques. We. introduce a novel interference graph (the power-based interference graph), whose independence and chromatic numbers provide fundamental bounds for the integrated scheduling-power control problem. Based on the properties of the power-based interference graph, we develop two distributed algorithms (the distributed power controlled scheduling algorithms, DPCSs), which merely utilize the local information in the process of time slot allocation and power control. We show that both algorithms lead to a significant increase in the network throughput level through-spatial reuse of the communications resources while (Pareto) optimizing the power consumption.