This paper investigates the possibility of developing a SPECT system that combines the high spatial resolution of position sensitive photomultiplier tubes (PSPMTs) with the excellent performance of iterative reconstruction algorithms. A small field of view (FOV) camera based on a PSPMT and a pixelized scintillation crystal made of CsI(Tl) have been used for the acquisition of the projections. With the use of maximum likelihood expectation maximization (ML-EM) and ordered subsets expectation maximization (OSEM) slices of the object are obtained while three-dimensional (3D) reconstruction of the object is carried out using a modified marching cubes (MMC) algorithm. The spatial resolution of tomographic images obtained with the system was 2-3mm. The spatial resolution of a conventional system that uses filtered backprojection (FBP) for slices reconstruction was more than 9 mm.