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This paper presents a decentralized clustering and gateway selection algorithm for wireless ad-hoc sensor networks. Each sensor uses a random waiting timer and local criteria to determine whether to form a new cluster or to join a current cluster and utilizes the messages transmitted during hierarchical clustering to choose distributed gateways such that communication for adjacent clusters and adaptive distributed topology control can be achieved. The algorithm operates without a centralized controller, it operates asynchronously, and does not require that the location of the sensors be known a priori. A performance analysis of the topology management and the energy requirements of the algorithm are used to study the behaviors of the proposed algorithm. The performance of the algorithm is described analytically and via simulation.