A method of operating a surveillance system includes capturing a sequence of images of a field-of-view. A source of localized motion is disposed within at least one of a plurality of segments of the field-of-view. Provided to an operator is means to enable or disable, for at least one of the segments of the field-of-view, a localized motion identification and notification function wherein localized motion in the segment is automatically identified and distinguished from transient motion, and the operator is automatically notified about the presence of the localized motion.