A new diagnostic method for local particle transport, which is based on injection of the tracer-encapsulated solid pellet (TESPEL), was applied for the first time in experiments on the CHS device. Such a configuration of the pellet allows the lithium hydride tracer to reach the core plasma region and be deposited within a few centimetres in the radial direction, which was confirmed by measurements with photomultipliers and CCD imaging. The radial diffusion of the fully ionized tracer is observed by means of charge exchange recombination spectroscopy with the heating neutral beam as a source. The local tracer deposition and complete ionization of the tracer greatly simplify the transport analysis and allow the use of analytic expressions for deriving the diffusion coefficient, D. With this procedure, the diffusion coefficient was determined for various plasma conditions and was found to be larger for discharges with higher electron temperature. An impurity transport code was also applied to the experimental data, which allowed more precise calculation of the transport coefficients including the pinch velocity, V . It is expected that a higher accuracy will be achieved for the case of TESPEL injection into a larger-scale plasma.