Prolonged network lifetime, scalability, and load balancing are important requirements for many ad-hoc sensor network applications [1]. To satisfy these requirements, several solutions have been proposed that exploit the tradeoffs among energy, accuracy, and latency. Many solutions also use hierarchical (tiered) architectures, where sensor nodes are clustered according to application-specific parameters. Several protocols and applications can exploit such clustering techniques to increase scalability and reduce delays. Examples include routing protocols, and applications requiring efficient data aggregation (e.g., computing the maximum detected radiation around an object). Clustering protocols have been previously investigated as either stand-alone protocols for ad-hoc networks, e.g., [2], [3], [4], [5], or in the context of routing protocols, e.g., [6], [7], [8], [9], [10]. In this work, we present a stand-alone distributed clustering approach that considers a hybrid of energy and communication cost. Based on this approach, we present a protocol, HEED (Hybrid Energy-Efficient Distributed clustering) [11], which has five primary goals: (i) operating in a completely distributed manner, (ii) prolonging network lifetime by distributing energy consumption, (iii) terminating the clustering process within a constant number of iterations/steps, (iv) minimizing control overhead (to be linear in the number of nodes), and (v) producing well-distributed cluster heads and compact clusters. HEED does not make any assumptions about the distribution or density of nodes, or about node capabilities, e.g., location-awareness. HEED assumes that all nodes are equally significant and energy consumption is not necessarily uniform among nodes. To the best of our knowledge, no previously proposed clustering protocol has addressed these goals in an integrated manner. The HEED clustering operation is invoked at each node in order to decide if the node will elect to become a cluster head or join a cluster. A cluster head is responsible for two important tasks: (1) intra-cluster coordination, i.e., coordinating among nodes within its cluster, and (2) inter-cluster communication, i.e., communicating with other cluster heads and/or external observers. The cluster range or radius is determined by the transmission power level used for intra-cluster announcements and during clustering. We refer to this as the cluster power level. The cluster power level should be set to one of the lower power levels of a node, to increase spatial reuse, and reserve higher power levels for inter-cluster communication. Selecting cluster heads is based on two parameters: a primary parameter and a secondary one. HEED uses the primary parameter to probabilistically select an initial set of cluster heads, and the secondary parameter to "break ties." A tie in this context means that a node falls within the "cluster range" of more than one cluster head.