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Sensor nodes in a wireless sensor network have limited power, low memory and little processing capability. One of the primary requirements of the localization algorithm is low power consumption. The paper presents an energy efficient localization algorithm for a wireless sensor network with moving beacons. It is different from other localization algorithms in the way sensors calculate their position. Four beacons move towards the node to be localized and form a square, the sensor node being at the center. The sensor node calculates its position as the centroid of the square after getting co-ordinate information from the four beacons at the corners of the square. Localized and non-localized nodes can be distinguished by assigning a unique code to each sensor in the network. The computational requirement at the node is very low and it has flexible accuracy.