We find a principle of harmonic analyticity underlying the quaternioni
c (quaternion-Kahler) geometry and solve the differential constraints
which define this geometry. To this end the original 4n-dimensional qu
aternionic manifold is extended to a bi-harmonic space. The latter inc
ludes additional harmonic coordinates associated with both the tangent
local Sp(1) group and an extra rigid SU(2) group rotating the complex
structures. Then the constraints can be rewritten as integrability co
nditions for the existence of an analytic subspace in the bi-harmonic
space and solved in terms of two unconstrained potentials on the analy
tic subspace. Geometrically, the potentials have the meaning of vielbe
ins associated with the harmonic coordinates. We also establish a one-
to-one correspondence between the quaternionic spaces and off-shell N
= 2 supersymmetric sigma-models coupled to N = 2 supergravity. The gen
eral N = 2 sigma-model Lagrangian when written in the harmonic supersp
ace is composed of the quaternionic potentials. Coordinates of the ana
lytic subspace are identified with superfields describing N = 2 matter
hypermultiplets and a compensating hypermultiplet of N = 2 supergravi
ty. As an illustration we present the potentials for the symmetric qua
ternionic spaces. 1994 Academic Press, Inc.