This paper discusses how the quenching of the magnetic diffusivity by
a magnetic field can lead self-consistently to a realistic scenario fb
r dynamo action at the base of the solar convection zone. An alpha ome
ga dynamo model is developed to test Parker's hypothesis that quenchin
g the diffusivity inversely with the magnetic energy in a nonlinear dy
namo model leads to the restriction of the field to a thin layer at an
interface between a layer of shear (omega-effect) and cyclonic turbul
ence (alpha-effect). As the dynamo number is increased, solutions jump
discontinuously roma branch of ''weak-field'' solutions to another wh
ere strong magnetic field is generated in a layer of reduced diffusivi
ty. Hysteresis between these: two solutions is observed, and this is t
hen explained by deriving a simpler model using physical arguments. Th
is model predicts the occurrence of a cusp catastrophe which may be fo
und In the partial differential equations. The results are relevant to
a solar dynamo acting at the base of the convection zone and may give
an insight into the mechanism leading to the appearance of grand mini
ma in solar activity.