To achieve high tampering localization precision and low distortion, a semi-fragile reversible watermarking for authenticating 2D engineering graphics is proposed based on an improved region nesting and a novel watermark generation. First, an intensive investigation is performed to the recently proposed region nesting (RN) partition. It is found that the original vertex and its mapped one cannot be guaranteed to be on the same line, which means that it still has room for improvement in term of distortion. Based on this, an improved region nesting partition (IRN) is proposed. Secondly, inspiring by the idea of soldiers parading, a novel watermark generation based on the short hash of the adjacent geometric features is developed. Then, a new coordinate system is constructed to achieve invariability of translation, scaling, rotation and entity re-arrangement. Based on the above techniques, a semi-fragile reversible watermarking for authenticating 2D engineering graphics is put forward. Experimental results and analysis show that IRN can obtain at least 15% distortion reduction compared with RN, the precision of tampering localization can be improved to a single vertex, and a certain semi-fragility in translation, scaling, rotation, and entity re-arrangement can be achieved. Furthermore, it has no file size expansion, and can obtain a good balance among imperceptibility, semi-fragility and tampering localization precision.