  The locality hypothesis in density-functional theory (DFT) states that the
functional derivative of the Hohenberg-Kohn universal functional can be
expressed as a local multiplicative potential function, and this is the basis
of DFT and of the successful Kohn-Sham model. Nesbet has in several papers
[Phys. Rev. A \bf{58}, R12 (1998); \it{ibid.} A \bf{65}, 010502 (2001); Adv.
Quant. Chem, \bf{43}, 1 (2003)] claimed that this hypothesis is in conflict
with fundamental quantum physics, and as a consequence that the Hohenberg-Kohn
theory cannot be generally valid. We have in a Comment to the Physical Review
[Phys. Rev. A \bf{67}, 056501 (2003)] commented upon these works and recently
extended the arguments [Adv. Quant. Chem. \bf{43}, 95 (2003)]. We have shown
that there is no such conflict and that the locality hypothesis is inherently
exact. In the present work we have furthermore verified this numerically by
constructing a local Kohn-Sham potential for the $1s2s ^3S$ state of helium
that generates the many-body electron density and shown that the corresponding
$2s$ Kohn-Sham orbital eigenvalue agrees with the ionization energy to nine
digits. Similar result is obtained with the Hartree-Fock density. In addition
to verifying the locality hypothesis, this confirms the theorem regarding the
Kohn-Sham eigenvalue of the highest occupied orbital.
