  We study interaction-induced localization of electrons in an inhomogeneous
quasi-one-dimensional system--a wire with two regions, one at low density and
the other high. Quantum Monte Carlo techniques are used to treat the strong
Coulomb interactions in the low density region, where localization of electrons
occurs. The nature of the transition from high to low density depends on the
density gradient--if it is steep, a barrier develops between the two regions,
causing Coulomb blockade effects. Ferromagnetic spin polarization does not
appear for any parameters studied. The picture emerging here is in good
agreement with measurements of tunneling between two wires.
