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From page 101 in Atiyah-MacDonald:

"Two of the important properties of localization are that it preserves exactness and the Noetherian property...."

I remember proving that it preserves exactness, it's proposition 3.3. on page 39. But what is meant by "Noetherian property"? Thanks.

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It means that if $M$ is Noetherian then so is $S^{-1}M$. If you first prove that for any submodule $N'$ of $S^{-1}M$ one has $N' = S^{-1}N$, where $N$ is the inverse image of $N'$ in $M$, then this follows quickly.

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    Sure, I just wanted to add the comment in case someone else reads this thread and is interested. : )2012-07-25