Formation of defect states by optical induction in one-dimensional photonic lattices fabricated in photorefractive lithium niobate is investigated experimentally. First, by using a moving narrow laser beam for defect recording, we investigate light propagation in samples containing single line defects and adjacent channel defects forming directional couplers. Then, these results are used to create lattices with randomly distributed defects, resembling a disordered optical potential. In such lattices, wave propagation is found to change from ballistic transport to transverse Anderson-like light localization as a function of induced disorder. © 2009 Springer-Verlag.