In many applications of wireless sensor networks, sensor nodes are manually deployed in hostile environments where an attacker can disrupt the localization service and tamper with legitimate in-network communication. In this article, we introduce Secure Walking GPS, a practical and cost effective secure localization and key distribution solution for real, manual deployments of WSNs. Using the location information provided by the GPS and inertial guidance modules on a special master node, Secure Walking GPS achieves accurate node localization and location-based key distribution at the same time. We evaluate our localization solution in real deployments of MicaZ. Our experiments show that 100% of the deployed nodes localize (i.e., have a location position) and that the average localization errors are within 1-2m, due mainly to the limitations of the existing commercial GPS devices. Our further analysis and simulation results indicate that the Secure Walking GPS scheme makes a deployed WSN resistant to the Dolev-Yao, the wormhole, and the GPS-denial attacks, the scheme is practical for large-scale deployments with resource-constrained sensor nodes and has good localization and key distribution performance.