Time synchronization has proven to be critical in sensor fusion applications where the time of arrival is utilized as a decision variable. Herein, the application of pulse-coupled synchronization to an acoustic event detection system based on a wireless sensor network is presented. The aim of the system is to locate the source of acoustic events utilizing time of arrival measurements for different formations of the sensor network. A distributed localization algorithm is introduced that solves the problem locally using only a subset of the time of arrival measurements and then fuses the local guesses using averaging consensus techniques. It is shown that the pulse-coupled strategy provides the system with the proper level of synchronization needed to enable accurate localization, even when there exists drift between the internal clocks and the formation is not perfectly maintained. Moreover, the distributed nature of pulse-coupled synchronization allows coordinated synchronization and distributed localization over an infrastructure-free ad-hoc network.