A method and apparatus for enhancing security in a wireless network using distance measurement techniques provides an additional layer of security and privacy in wireless communications. A distance measurement or location-finding is performed between two devices by transmitting and receiving one or more signals and computing a distance between the two devices or a location of a connecting device. The resulting computed distance or location is used to determine whether or not to permit pairing, secure connection or secure transactions between the two devices. The computed distance or location can be further used in combination with a signal strength measurement to link to locate and measure nearby devices first, reducing the time required to initialize network communications. Management software may be enhanced to facilitate connecting to desired devices by providing an indication of computed distance or location of each device, and a list may be generated in order of proximity, further facilitating connection to the desired devices. Set-up of wireless networks may automated by using a short distance to facilitate connection between nodes.