A stimulating needle and catheter system is provided for delivery of an anaesthetic drug to a nerve having a fascia sheath. The position of the stimulating needle may be identified after insertion into the body of a patient by electrically stimulating and thus locating a specific nerve. When a specific nerve is located, the catheter is inserted through the needle such that the distal tip of the catheter is located at a point slightly beyond the distal tip of the needle. The distal tip of the catheter may then be manipulated and the optimum position within the nerve determined by applying an electrical impulse through a wire located within the catheter from the proximal end to the distal tip of the catheter. A tunneling device is inserted into the skin of the patient to form a subcutaneous tunnel through which the proximal end of the catheter is inserted.