I make no claim for my ability to achieve such accuracy, but my instructor taught us to mark out perpendicular lines, pick up intersections and lightly mark with a sharp prick punch (60° centre punch), then using an eyeglass, 'nudging' the position until properly located, then apply a heavier tap. We used a small centre drill and opened up and reamed in the usual way. He claimed, with care, 0.005".
I think Chapman's first volume of Workshop Technology also claims five thou. I've put my copies somewhere safe, and can't find them. There is a set of all three on Ebay for £27.99.
Machine Tool Operation ( [US textbooks] Burghardt, etc., 1953, vol 1) claims it is possible to set external calipers 'easily' to within 0.002-3" against an engineer's rules. In those days, they were accurately ruled and deeply etched.
By my time, vernier height gauges were universally used, and we had mills and jig boring machines for accurate work.
Bill