We consider the problem of constructing connected dominating set for application in ad-hoc sensor network. Most of the dominating set algorithms reported in the literature consider size reduction of the dominating set as the only objective function. In this paper we consider the problem of constructing reduced size dominating set that also reduces interference. It may be noted that reduction of interference leads to the reduction of energy consumption. Specifically, we present an algorithm called `sprinkler-tree? that generates connected dominating set of reduced size while reducing interference. Experimental investigation shows that the proposed algorithm is very effective in constructing small size skeleton network with reduced interference.