Sensor Networks have recently emerged as an important computing platform. However, the energy constrained and limited computing resources of the sensor nodes present major challenges in gathering data. In this work, we propose a new distributed clustering and data aggregation algorithm, CODA (Cluster-based self-Organizing Data Aggregation), based on the distance from the sink in ad-hoc wireless sensor networks. While cluster-based data gathering is efficient at energy and bandwidth, it's difficult to cluster efficiently. We use the distance vector from the sink, which affects the energy depletion of the network. Our simulation results show that the proposed algorithm balances the energy dissipation over the whole network thus prolongs the network lifetime.