Scanning tunneling microscope is used to create local surface modifications by means of ion impact damage. Graphite has been used as a test case to demonstrate this local surface sputtering. Using 0.1-µs voltage pulse of - 30 to - 140 V applied to the sample in a rough vacuum of 10-2 Torr, a confined area of damage (typically about 100 Å in diameter) is usually obtained. The damaged area consists of several layers of terraces. Defects of the size of a few atoms can also be found. Electronic perturbations caused by defects can form superlattices with a spacing three times that of the graphite lattice. From measurements of the threshold voltage for the discharge, the minimum radius of curvature of the tip can be estimated. The potential applications of this technique and comparison with previous results are discussed.