  We present a simple and general method for construction of localized orbitals
to describe electronic structure of extended periodic metals and insulators as
well as confined systems. Spatial decay of these orbitals is found to exhibit
exponential behavior for insulators and power law for metals. While these
orbitals provide a clear description of bonding, they can be also used to
determine polarization of insulators. Within density functional theory, we
illustrate applications of this method to crystalline Aluminium, Copper,
Silicon, PbTiO$_3$ and molecules such as ethane and diborane.
