Abstract. Kamperman and Walters proposed the notion of a simulation of one rewrite system by another one, whereby each term of the simulating rewrite system is related to a term in the original rewrite system. In this paper it is shown that if such a simulation is sound and complete and preserves termination, then the transformation of the original into the simulating rewrite system constitutes a correct step in the compilation of the original rewrite system. That is, the normal forms of a term in the original rewrite system can then be obtained by computing the normal forms of a related term in the simulating rewrite system.