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We show that a single thin layer (thickness much less than an optical wavelength) of nonlinear optical material can display optical bistability solely as a consequence of local field effects. Optical bistability is predicted when the phase of the complex third-order susceptibility χ (3) is nearly opposite that of the linear dielectric constant ε and when the incident field amplitude is adjusted so that χ (3) E 02 is approximately equal to 10 -3 ε 3 .