Lateral confinement has been suggested as a possible mechanism for dep
opulation of surface state levels and concomitant modification of meta
l surface related properties. Studies to date give conflicting account
s of the effectiveness of confinement due to scattering at step edges.
We present a quantitative study of surface states on nanoscale Ag isl
ands on Ag(111), using low-temperature scanning tunneling microscopy a
nd electronic structure calculations. These results confirm the validi
ty of the confinement picture down to the smallest of island sizes.