A novel rotating mask system has been designed and implemented on the DIII-D phase contrast imaging (PCI) diagnostic to produce the first spatially localized PCI measurements of a tokamak plasma. The localization technique makes use of the variation in the magnetic field component perpendicular to the viewing chord as a function of chord height. This new capability provides measurements in the range of 2 < k < 30 cm(-1), 10 kHz < f < 10 MHz, and 0.7 < r/a < 1. This technique provides a spatial resolution of 10 cm at k=15 cm(-1) and can realistically provide measurements at a rate of 10 profiles/s. Calibration measurements show accurate characterization of the system transfer function making feasible a time dependent analysis that results in improved localization. Initial measurements show turbulence to peak near the plasma edge. This upgrade is part of a broader program to operate the DIII-D PCI at wave numbers up to 40 cm(-1) to probe electron scale turbulence in the plasma core.