This　paper　proposed　a　novel　distributed　multi-hop　collaborative　localization　algorithm　(MCL)　to　effectively　estimate　the　position　of　sensor　nodes　in　sparse-anchored　WSN.　The　scheme　utilizes　the　collaborative　communications　with　local　multi-hop　anchors　to　exclude　alias　position　from　possible　estimated　positions　or　minimize　position　area.　We　also　investigate　the　factors　of　positioning　accuracy　and　optimize　selection　of　anchors　based　on　error　analysis　to　eliminate　impact　of　redundancy　anchors.　We　simulate　the　relationship　between　anchor　density　and　positioning　ratio　and　verify　validity　of　our　approach　in　Matlab.　Simulation　results　demonstrate:　(i)　The　algorithm　improves　the　positioning　ratio　distinctly　under　low　anchor　density　situation,　specifically　for　nodes　positioning　on　the　margin　of　network.　(ii)　The　positioning　accuracy　is　increased　by　anchor　optimization　and　limit　of　error　propagation.　So　it　improved　feasibility　and　decreased　cost　of　WSN　positioning　techniques,　significantly.