A manifestly gauge invariant formulation of chiral theories with fermions on
the lattice is developed. It combines SLAC lattice derivative \cite{DWY},
\cite{ACS}, \cite{S} and generalized Pauli-Villars regularization \cite{FS}.
The theory is free of fermion doubling, requires only local gauge invariant
counterterms and produces correct results when applied to exactly solvable two
dimensional models.Comment: 10 pages LATEX fil