We study photon localization and delocalization in a system of two nonlinear cavities with intensity-dependent coupling. These two features are analogous to the bunching and antibunching of photons. It is shown that complete localization or delocalization is possible for proper choices of the strengths of nonlinearity, inter-cavity detuning, and inter-cavity coupling. The role of the relative phase in the initial superposition in attaining localization and delocalization is discussed. Effects of dissipation and decoherence are considered, and the role of quantum interference in mitigating these effects is explored.