There are few localization schemes targeted at mobile wireless sensor networks. In this paper, we propose an Enhanced Color-theory-based Dynamic Localization (E-CDL) which is based on the CDL algorithm [I]. However, the location accuracy of this algorithm depends on the accuracy of the average hop distance derivation. Therefore, we present two novel schemes to estimate the average hop distance. We analyzed the behavior of sensor nodes communication, and computed the expected value of the average hop distance, which is 7r/9, where r is the radio range. In addition, since CDL is based on the DV-hop scheme, the derived shortest path length is usually larger than the corresponding Euclidean distance. With this observation, the derived shortest path length can be adjusted by the ratio of the Euclidean distance and the shortest path distance to further enhance the location accuracy. Finally, in mobile wireless sensor networks, sensor nodes may become isolated. By employing mobile anchor nodes, the isolation problem can be relieved and hence the location accuracy can be improved. Simulation results have shown that the location accuracy of E-CDL is 50% - 55% better than that of CDL, and 75% - 80% better than that of MCL (Monte Carlo Localization) . In addition, we have implemented and verified our algorithm on the MICAz Mote Developer's Kit .