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Multivariate process control in Distributed Sensor Networks (DSNs) is an important and challenging topic. Although a fully deployed sensor network will minimize information loss, the associated sensing cost can be overwhelming. Many efforts have been made to investigate the optimal sensor allocation strategy for different process control applications; however, most of them assume that the sensor layout is fixed once sensors are deployed in the system. This paper proposes a novel approach to adaptively reallocate sensor resources based on online observations, which can enhance both monitoring and diagnosis capabilities. The proposed adaptive sensor allocation strategy addresses two fundamental issues: when to reallocate sensors and how to update sensor layout. A max-min criterion is developed to manage sensor reallocation and process change detection in an integrated manner. To investigate the adaptive strategy, a Bayesian Network (BN) model is assumed available to represent the causal relationships among a set of variables. Case studies are performed on a hot forming process and a cap alignment process to illustrate the procedure and evaluate the performance of the proposed method under different fault scenarios.