Numerical experiments have shown that two-level Schwarz methods often
perform very well even if the overlap between neighboring subregions i
s quite small. This is true to an even greater extent for a related al
gorithm, due to Barry Smith, where a Schwarz algorithm is applied to t
he reduced linear system of equations that remains after the variables
interior to the subregions have been eliminated. In this paper, a sup
porting theory is developed.