The invention relates to positioning technology, in particular to a wireless micropower network positioning system and a positioning method thereof. The invention overcomes the defects that the conventional positioning system has complex structure, high investment and high running cost, and cannot meet the requirements of various kinds of practical application under complex environment conditions such as cities and the like, and discloses the wireless micropower network positioning system and the positioning method thereof. The position of a moving target is determined by taking the position of a network node as a reference according to the general relationship among a signal source, a receiver, transmitting power and signal intensity in a positioning area and the specific relationship depending on environmental characteristics. The positioning system has the advantages of simple structure, low cost, mature technology, no need of complex measurement and calculation, and no need of an electronic map to meet the requirements of practical application; and the positioning system is a positioning network, and is also a communication network capable of transmitting position information and control information, so that the structure of the system is simplified, the system is convenient to use, and the running cost is greatly reduced.