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This paper considers the observer-based fuzzy control problem for nonlinear discrete-time systems, which are represented by a type of fuzzy systems with local nonlinear models. By using the estimations of the states and nonlinear functions in local models, sufficient conditions for designing observer-based controllers are given for discrete-time nonlinear systems. A separation property, that is, the controller and the observer can be independently designed, is proved for the class of fuzzy systems. Lastly, a numerical example is given to illustrate the effectiveness of the proposed methods.