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A method of localizing an electrical dipole in the brain from the scalp potential distribution has been developed with the aid of the boundary element method, in which a real geometry of the head is exactly taken into account and homogeneous electrical conductivity is assumed. Accuracy of the method was evaluated through animal experiments with a cat in which a current dipole was artificially generated in the brain. Deviation of the estimated dipole location from the true one was not random, but rather systematic (probably due to in-homogeneous conductivity distribution). It is numerically found that cavities in the skull disturb the inverse solution especially when the dipole is oriented toward the cavities. In vivo tests of the method were also done for primary somatosensory evoked potentials as a response to median nerve stimulation of a cat and myoclonic EEG. Although the homogeneous approximation was made, it does not change the significance of the results obtained by the present method.