A method is proposed for the solution of the self-consistent field equations that can lead to localized occupied and virtual molecular orbitals, avoiding the need for solving for the canonical molecular orbitals. The method starts with strongly localized ''guess molecular orbitals'', it is nonperturbative and proceeds through the diagonalization of single configuration interaction matrices which may be rendered size-consistent through appropriate coupled electron pair approximation or coupled-cluster-type dressings. We see a potential utility for the method in applications to large systems where localized orbitals will improve the scaling of the computational resources required with increasing system size. (C) 1997 American Institute of Physics. [S0021-9606(97)00947-1].