We have developed a high conductivity bilayered ceria/bismuth oxide anolyte/electrolyte that uses the p(O2) gradient to obtain stability at the anolyte-electrolyte interface and reduced electronic conduction due to the electrolyte region. Results in terms of solid oxide fuel cell (SOFC) performance and stability are presented. These results include a 90 to 160 mV increase in open-circuit potential, depending on temperature, with the bilayered structure as compared to SOFCs fabricated from a single ceria layer. An open-circuit potential of >1.0 V was obtained at 500 degrees C with the bilayered structure. This increase in open-circuit potential is obtained without any measurable increase in cell resistance and is stable for over 1400 h of testing, under both open-circuit and maximum power conditions. Moreover, SOFCs fabricated from the bilayered structure result in a 33% greater power density as compared to cells with a single ceria electrolyte layer.