We describe recent progress in developing practical ab initio methods for w
hich the computer effort is proportional to the number of atoms: linear sca
ling or O(N) methods. It is shown that the locality property of the density
matrix gives a general framework for constructing such methods. We then de
scribe our scheme, which operates within density functional theory. Efficie
nt methods for reaching the electronic ground state are summarized, both fo
r finding the density matrix and in varying the localized orbitals. (C) 200
0 John Wiley & Sons, Inc.