The gauge covariant lattice Dirac operator D which has recently been propos
ed by Neuberger satisfies the Ginsparg-Wilson relation and thus preserves c
hiral symmetry. The operator also avoids a doubling of fermion species, but
its locality properties are not obvious. We now prove that D is local (wit
h exponentially decaying tails) if the gauge field is sufficiently smooth a
t the scale of the cutoff. Further analytic and numerical studies moreover
suggest that the locality of the operator is in fact guaranteed under far m
ore general conditions. (C) 1999 Elsevier Science B.V. All rights reserved.