Conventional radial-basis-function networks and fuzzy systems have serious problems in dealing with the non1inea:r approximations on high-dimensional spaces due to the explosive increase of the number of hidden nodes or fuzzy IF-THEN rules. In order to avoid such problems, this paper proposes a tree-structured intelligent system in which semi-local basis functions form its basic elements, and develops a training algorithm for the proposed system based on the modified genetic algorithm and LMS rule. Theoretical analysis is performed on the approximation capability of the proposed system, together with experimental studies which demonstrate the effectiveness of the developed methodology.