Cascading failures in power systems propagate non-locally, making the control and mitigation of outages hard. In Part II of this paper, we continue the study of tree partitioning of transmission networks and characterize analytically line failure localizability. We show that a tree-partition region can be further decomposed into disjoint cells in which line failures will be contained. When a non-cut set of lines are tripped simultaneously, its impact is localized within each cell that contains a line outage. In contrast, when a bridge line that connects two tree-partition regions is tripped, its impact propagates globally across the network, affecting the power flows on all remaining lines. This characterization suggests that it is possible to improve system reliability by switching off certain transmission lines to create more, smaller cells, thus localizing line failures and reducing the risk of large-scale outages. We demonstrate using the IEEE 118-bus test system that switching off a negligible portion of lines allows the impact of line failures to be significantly more localized without substantial changes in line congestion