This document describes a proposed stochastic implementation of the Sauvola local image thresholding algorithm to reduce area, power consumption, and faults compared to a conventional implementation. The stochastic implementation converts pixel values and intermediate results to stochastic bit streams, uses stochastic multiplying counters (SMCs) to calculate averages and standard deviations in parallel, and a stochastic comparator to determine binary output values. Experimental results using Xilinx 14.2 show the stochastic implementation requires less time, area and power while being more fault tolerant.