Range-free localization technology in wireless sensor networks is of great current interest for researchers. In order to improve the accuracy of range estimation between the sensors and anchors, we introduced a dynamic reliable anchor-based location discovery algorithm in anisotropic wireless sensor networks with holes, which was range-free. Based on the differences of average distances of one hop along the shortest path between different anchor pairs, sensor nodes managed to get two sets of direct reliable reference anchors and indirect reliable reference anchors. Then sensor nodes were localized by using the reliable reference anchors set. Simulation results show that the positioning error is decreased compared with previous algorithms.