Quantum gravity is studied nonperturbatively in the case in which spac
e has a boundary with finite area. A natural set of boundary condition
s is studied in the Euclidean signature theory in which the pullback o
f the curvature to the boundary is self-dual (with a cosmological cons
tant). A Hilbert space which describes all the information accessible
by measuring the metric and connection induced in the. boundary is con
structed and is found to be the direct sum of the state spaces of all
SU(2) Chern-Simon theories defined by all choices of punctures and rep
resentations on the spatial boundary L. The integer level k of Chern-S
imons theory is found to be given by k = 6 pi/G(2) Lambda + alpha, whe
re Lambda is the cosmological constant and alpha is a C P breaking pha
se: Using these results, expectation values of observables which are f
unctions of fields on the boundary may be evaluated in closed form. Gi
ven these results, it is natural to make the conjecture that the quant
um states of the system are completely determined by measurements made
on the boundary. One consequence of this is the Bekenstein bound, whi
ch says that once the two metric of the boundary has been measured, th
e subspace of the physical state space that describes the further info
rmation that may be obtained about the interior has finite dimension e
qual to the exponent of the area of the boundary, in Planck units, tim
es a fixed constant. Finally, these results confirm both the categoric
al-theoretic ''ladder of dimensions'' picture of Crane and the hologra
phic hypothesis of Susskind and 't Hooft. (C) 1995 American Institute
of Physics.