This paper provides a novel formulation relating underwater range measurements to body-fixed position when several acoustic transceivers are mounted on the vehicle and only one transponder is placed in the vehicle's surroundings. This formulation is used in a novel three-stage filter for aided inertial navigation that has both global convergence and nearoptimal performance w.r.t. variance of the estimate. It estimates both the position and velocity of the vehicle, and relies on a globally stable attitude observer to provide estimates of the attitude and angular rate sensor bias. Two different formulations of the novel three-stage filter were tested in simulations and shown to track the true position.