Localization and time synchronization are both essential services for Internet-connected underwater acoustic testbeds. Although the two are mutually coupled, they are often treated separately. We propose a new low-cost distributed networked localization and time synchronization framework for underwater acoustic sensor network testbeds. The proposal is based on decoupling the two problems and solving first the time synchronization then localization using the same set of messages, i.e. with no additional overhead. A coarse, followed by a fine-grained localization algorithms are adopted to accurately estimate the location of an unknown node. The protocol is robust to noisy range measurements. The proposed scheme is implemented in a testbed based on Teledyne Benthos Telesonar SM-975 underwater modems and tested extensively in Lake LaSalle at the University at Buffalo. Experiments and simulations in terms of root mean square error (RMSE) demonstrate that the proposed scheme can achieve a high accuracy for a given energy budget, i.e. for a given number of message exchanges. I. INTRODUCTION Localization in underwater acoustic (UW-A) networks is essential for geographical routing, medium access control (MAC), autonomous underwater vehicle (AUV) navigation, IP connectivity [1], among other applications. One way to perform localization is to rely on GPS. However, radio waves are highly attenuated underwater. Acoustic communication is the transmission technology of choice for underwater networked systems [2]. The UW-A channel is characterized by slow propagation of acoustic waves, limited bandwidth, high transmit energy consumption, high and variable propagation delays, motion-induced Doppler spread, frequency selective fading and multipath [3], [4]. These characteristics pose severe challenges towards designing robust localization schemes that can achieve the following desirable properties: i) high accuracy, ii) fast convergence, iii) wide coverage, iv) low communication cost, and v) high scalability. Localization in general requires several sensor nodes with known locations (anchor nodes) with the distance or angle measurements between the anchor nodes and the unknown node. In wireless sensor networks (WSNs) distance or angle can be measured using one of the following methods: i) Angle-of-Arrival (AoA), ii) Received Signal Strength Indicator (RSSI), iii) Time-of-Arrival (ToA), and iv) Time Difference of Arrival (TDoA). In underwater acoustic sensor networks (UW-ASNs) ToA and TDoA are more widely used, as RSSI suffer due to the time varying nature of the UW-A channel and AoA requires an array of transducers, which can be very costly to provide in underwater sensor network deployments [5]. A number of localization techniques have been proposed for UW-ASNs [6], [7], [8], which can be categorized into centralized and decentralized; each can be further sub-categorized into estimation-based and prediction-based. In general, centralized localization schemes rely on a central controller, while decentralized schemes can perform localization autonomously. To determine an accurate estimate of the location of an unknown node it is essential to have the clocks of the sensor nodes synchronized. Nevertheless, when designing underwater range-based localization algorithms often times nodes are assumed to be time synchronized [9], [10], [11], [12], and/or clock skews are not taken into consideration [13]. Very limited research only has addressed joint localization and time synchronization for UW-ASNs. Among them in [12], JSL, a joint time synchronization and localization protocol with stratification and mobility compensation is presented. However, JSL does not consider range measurement errors and it makes use of a linear least squares quadratic linearization algorithm for localization, which is known to suffer when anchor node location and/or propagation time estimate is not precise [14]. Moreover, to compensate for the stratification effect it assumes the sound speed profile is known a-priori. In [15], a heuristic algorithm for time synchronization and localization in the UW-A channel is presented. The algorithm relies on the assumption that nodes are equipped with self-navigation systems and that they provide accurate information, which might not be realistic, as the accuracy of such a system can have a strong impact on the localization algorithm. It is still desirable to have a robust autonomous networked infrastructure that can provide both localization and time synchronization services at low-cost in practical testbed deployments. To fill that gap, we therefore propose a low-cost distributed networked localization and time synchronization framework for UW-ASNs. The proposal is based on the Internet underwater framework [1], recently proposed and implemented by our research group at the University at Buffalo. The proposed time synchronization and localization algorithms are implemented in a testbed based on Teledyne Benthos Telesonar SM-975 underwater modems and tested extensively in Lake LaSalle at the University at Buffalo. Experiments in terms of root mean square error (RMSE) demonstrate that the proposed scheme can achieve a high accuracy for a given energy budget. The rest of this paper is organized as follows. In Section II, we introduce the problem statement followed by time synchronization and localization algorithms. In Section III, we describe the UW-Buffalo testbed architecture. In Section IV, we evaluate the proposed scheme. Finally, in Section V, we draw the main conclusions.