Luminous supersoft X-ray sources, with characteristic luminosities of approximately 10<SUP>38</SUP> ergs/s and temperatures, kT, of approximately 35 eV, have been established as a new and distinct class of X-ray source through recent Roentgen Satellite (ROSAT) observations. Several possible physical models have been proposed for these sources. One promising scenario (van den Heuvel et al. 1992) involves mass transfer, which is unstable on a thermal timescale, from a main-sequence or subgiant donor star onto the surface of a white dwarf. For a narrow range of accretion rates, steady nuclear burning of the accreted matter can take place. This process can provide the high luminosities and the correct range of temperatures observed in the supersoft sources. However, given the limited range of mass transfer rates that are consistent with this phenomenon, it is far from obvious that a sufficient population of such systems exists in galaxies such as our own, M31, and the Magellanic Clouds, in order to account for the large number of supersoft sources which can be inferred from present observations. This work addresses the population question in detail, through a Monte Carlo simulation of the formation and evolution of such systems, which starts with zero-age primordial binaries. In order to evolve into close binary systems which contain a white dwarf component and a companion transferring mass at a rate within the requisite narrow range, a binary system must undergo a specific progression of evolutionary steps. We find that a sufficient subset of our initial binaries evolve to become systems with the requisite properties, so that they can account for the population of supersoft sources that is inferred from observations. In particular, we find that there should be more than 1000 systems in the Galaxy today with properties that very closely match those of the observed supersoft sources. From our models, we find expected luminosities, white dwarf effective temperatures, and orbital periods in the ranges of 10<SUP>37</SUP> - 10<SUP>38</SUP> ergs/s, (1-5) x 10<SUP>5</SUP> K, and 8 hr-1.4 days, respectively. The masses of the white dwarf and donor star are expected to lie in the range of 0.7-1.05 solar mass and 1.3-2.7 solar mass. Finally, we discuss the role that supersoft X-ray sources may play as the progenitors of Type Ia supernovae, and estimate the rate of production via this channel.