The field of Computerized Tomography (CT) has revolutionized medical imaging and has been ap plied to the diverse fields of radio astronomy, elec tron microscopy, geophysics, stress analysis, radar, and nondestructive testing. Computer simula tion has played an integral role in the development of CT systems and algorithms. This article pro vides an overview of CT and the tools used to model and simulate CT systems, and demon strates the evaluation of a novel Localized CT (LCT) technique through simulation. The key features of the discrete wavelet transform are reviewed as they relate to the development of LCT algorithms. The Shepp-Logan head phantom is presented and utilized in the simulation and evalu ation of the proposed LCT technique.