Location information is critical to mobile wireless sensor networks (WSN) applications. With the help of location information, for example, routing can be performed more efficiently. In this paper, we propose a novel localization approach, Color-theory based Dynamic Localization (CDL), which is based on color theory to exploit localization in mobile WSNs. CDL makes use of the broadcast information, such as locations and RGB values, from all anchors (a small portion of nodes with GPS receivers attached), to help the server to create a location database and assist each sensor node to compute its RGB value. Then, the RGB values of all sensor nodes are sent to the server for localization of the sensor nodes. A unique feature of our color-theory based mechanism is that it can use one color to represent the distances of a sensor node to all anchors. Since CDL is easy to implement and is a centralized approach, it is very suitable for applications that need a centralized server to collect user (sensor) data and monitor user activities, such as community health-care systems and hospital monitoring systems. Evaluation results have shown that for mobile WSNs, the location accuracy of CDL (E-CDL, an enhanced version of CDL) is 40-50% (75-80%) better than that of MCL (Hu, L., & Evans, D. (2004). Localization for mobile sensor networks. In Proceedings of the 10th annual international conference on mobile computing and networking, pp. 45-57). In addition, we have implemented and validated our E-CDL algorithm on the MICAz Mote Developer's Kit.