The wavy-tilt-dam (WTD) seal is considered to be one of the ideal sealing patterns used in nuclear reactor coolant pumps (RCPs). Grinding such seals with a four-axis grinder had been proposed and six grinding implementation strategies were described in our previous studies. However, another important issue is to determine the positioning accuracy of each servo axis so that the high-precision moving components can be selected properly. In the present paper, the positioning accuracy analysis is carried out to seek a balance between the manufacturing cost and the accuracy requirements. First, a geometric model is established for investigating the error sensitivity of each axis and setting reasonable accuracy allocation of the four axes. Subsequently, the combined influence of all four axes is assessed based on multi-body system (MBS) theory and homogeneous transformation matrix (HTM). According to the results calculated, positioning errors of the X-axis, Z-axis, B-axis, and C-axis within ±10 μm, ±0.1 μm, ±1 arcsec and ±60 arcsec are acceptable, respectively. Meanwhile, the form error calculated of the ground wavy face is no more than 109.74 nm. It is indicated that the accuracy level of the moving components is achievable by modern manufacturing techniques. The present paper is expected to serve as a theoretical basis for the design and development of the four-axis grinder.