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In this paper, Land Marks for Unique Addressing( LMUA) algorithm is develped to generate unique ID for each and every node which leads to the formation of overlapping/Non overlapping clusters based on unique ID. To overcome the draw back of the developed LMUA algorithm, the concept of clustering is introduced. Based on the clustering concept a Land Marks for Unique Addressing and Clustering(LMUAC) Algorithm is developed to construct strictly non-overlapping clusters and classify those nodes in to Cluster Heads, Member Nodes, Gate way nodes and generating the Hierarchical code for the cluster heads to operate in the level one hierarchy for wireless communication switching. The expansion of the existing network can be performed or not without modifying the cost of adding the clusterhead is shown. The developed algorithm shows one way of efficiently constructing the