This paper presents distributed bounded-error parameter and state estimation algorithms suited to measurement processing by a network of sensors. Contrary to centralized estimation, where all data are collected to a central processing unit, here, each data is processed locally by the sensor, the results are broadcasted to the network and taken into account by the other sensors. A first analysis of the conditions under which distributed and centralized estimation provide the same results has been presented. An application to the tracking of a moving source using a network of sensors measuring the strength of the signal emitted by the source is considered.