A new mechanism to account for the anomalously large dielectric loss and apparent dielectric constant frequently observed in TiO2 is presented, which appears to agree well with experiment. The mechanism involves field‐induced donor migration where the field arises from a difference in work function between the rutile and a metal electrode. This migration results in a large decrease in electronic resistivity in the bulk of the crystal, with relatively thin insulating layers near the electrode surface. Experimental results on a variety of crystals are discussed, and the influence of electrode materials, surface condition, heat treatment, and ambient is analyzed. A method for numerically calculating the resistivity profile of such a crystal from dielectric loss data is described. Results indicative of room‐temperature p‐type conductivity and a voltage‐induced conduction process are presented.