A multilateration system is a 3-dimensional coordinate measurement system, through measuring multiple distances between a target point and laser interferometry measuring instruments, with high precision and large measuring scare, which consists of three laser trackers or tracers at least. A quantifiable analysis method is proposed, for the effect of stations’ mutual position relationship on the measurement accuracy of the multilateration system. The method is based on a mathematical model which linearizes the relationship between the coordinate measurement error of the system and the distance measurement error of laser trackers. Some methods, optimizing the mutual position relationship of stations, are derived from the model, which can improve the measurement accuracy. The rationality of the methods is verified by simulations and experiments. The results show that the max error of the multilateration system improved is only 0.020mm, which is better than a laser tracker. The multilateration system, with the optimized layout of stations, has higher precision.