A digital local decoding technique for retrieving color images from the encoded black-and-white film was proposed, and computer decoding from encoded film was realized for the first time. The color photography with tricolor grating and black-and-white film was explained; and the method of grating encoding was analyzed. The local Fourier transformation operator was established, three additive primaries red, green and blue were extracted by this operator and the original color image was retrieved. This method can retrieve color image by a Fourier transformation, and inverse Fourier transformation is not required.