This letter discusses the effects of a moderate magnetic field applied to a SQUID magnetometer and introduces the invention of the ‘‘flux dam.’’ A flux dam is a weak link or Josephson junction in series with the pickup loop which allows magnetic flux to enter and leave the inside of the superconducting loop easily for moderate changes in magnetic field. This largely prevents the flux lines from entering and being pinned in the superconducting parts of the magnetometer which would create extra low frequency noise. SQUID magnetometers with flux dams in the pickup loop can be operated in the Earth’s magnetic field without a significant increase in low frequency flux noise. ©1995 American Institute of Physics.