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With recent development of wireless sensor network (WSN), it has led to the appearance of many application specific communication protocols which must be energy efficient. Among those protocols, LEACH (low energy adaptive clustering hierarchy) protocol is one of the most promising protocols. In this paper, we propose the geographical-based multihop clustering algorithm (GBMCA) based on LEACH, which utilizes dividing the whole region into small regions (SRs) and multihop links for inter-cluster communication. We present theoretical analysis of the performance parameters such as the optimum transmission range Ropt and the optimum cluster radius ropt of GBMCA in terms of correctness and complexity of the algorithm. TDMA scheduling and flowchart of inter-cluster transmission are also presented. Simulation results demonstrate that our GBMCA can achieve better performance on both energy efficiency and the lifetime of WSN compared with LEACH.