We study a predator-prey system with Holling-Tanner interaction terms. We s
how that if the saturation rate m is large, spatially inhomogeneous steady-
state solutions arise, contrasting sharply with the small-m case, where no
such solution could exist. Furthermore, for large m, we give sharp estimate
s on the ranges of other parameters where spatially inhomogeneous solutions
can exist. We also determine the asymptotic behaviour of the spatially inh
omogeneous solutions as m --> infinity, and an interesting relation between
this population model and free boundary problems is revealed.