In this paper, we consider a general class of nonlinear discrete-time syste
ms described by their input-output (I/O) relationship. We first present the
necessary and sufficient conditions for existence of a local observable st
ate-space realization of the system and an explicit algorithm for computing
it. In cases where the I/O map and its resulting realization are nonminima
l, we formulate an algorithm for extracting its minimal realization wheneve
r possible, The developed theory and algorithms are illustrated by means of
several example.