The origin of the quantum Hall effect is discussed in terms of the transmission probabilities of states at the Fermi‐level. A new argument for the existence of extended states near the center of the Landau level is given. Disequilibrium between edge and bulk currents in the extended state region is shown to give rise to non‐local and geometry‐dependent behavior of the Hall and longitudinal resistance. A model is discussed in which a new intensive ‘‘resistivity’’ is defined and used to generate quantitative predictions for the resistance of GaAs Hall conductors.