Nerve localization using peripheral nerve stimulation (PNS) is affected by tissue properties, the anatomy surrounding the nerve, and characteristics of the stimulus waveform. A better understanding of the factors influencing PNS should lead to improved nerve localization techniques for use in regional anesthesia. A finite element approach is described here that includes capacitive effects and accounts for frequency-dependent tissue properties in a computationally efficient manner. The modeling approach can be applied to other bioelectric problems where capacitive effects may be important.