In this paper, the distributed set-membership fusion filtering problem is investigated for a class of nonlinear two-dimensional shift-varying systems subject to unknown-butbounded noises over sensor networks. The sensors are communicated with their neighbors according to a given topology through wireless networks of limited bandwidth. With the purpose of relieving the communication burden as well as enhancing the transmission security, a logarithmic-type encoding-decoding mechanism is introduced for each sensor node so as to encode the transmitted data with a finite number of bits. A distributed setmembership filter is designed to determine the local ellipsoidal set that contains the system state by only utilizing the data from the local sensor node and its neighbors, where the proposed filter scheme is truly distributed with desirable scalability. Then, a new ellipsoid-based fusion rule is developed for the designed set-membership filters in order to form the fused ellipsoidal set that has a globally smaller volume than all local ellipsoidal sets. With the aid of the mathematical induction technique, the set theory and the convex optimization approach, sufficient conditions are derived for the existence of the desired distributed set-membership filters and the fusion weights. Then, the filter parameters and the fusion weights are acquired by solving a set of constrained optimization problems. Finally, an illustrative example is given to demonstrate the effectiveness of the proposed fusion filtering algorithm.