  We perform a renormalization group transformation to construct a lattice
theory of chiral fermions. The field variables of the continuum theory are
averaged over hypercubes to define lattice fields. Integrating out the
continuum variables in perturbation theory we derive a chirally invariant
effective action for the lattice fields. This is consistent with the
Nielsen-Niniomiya theorem because the effective action is nonlocal. We also
construct the axial current on the lattice and we show that the axial anomaly
of the continuum theory is reproduced in the Schwinger model. This shows that
chiral fermions can be regularized on the lattice.
