  We study an incommensurate XXZ spin chain coupled to a collection of local
harmonic baths. At zero temperature, by varying the strength of the coupling to
the bath the chain undergoes a quantum phase transition between a Luttinger
liquid phase and a spin density wave (SDW). As opposed to the standard
mechanism, the SDW emerges in the absence of the opening of a gap, but it is
due to ``fractional excitations" induced by the bath. We also show, by
computing the DC conductivity, that the system is insulating in the presence of
a subohmic bath. We interpret this phenomenon as localization induced by the
bath \`a la Caldeira and Leggett.
