Large-scale, 2-D hybrid simulations are used to investigate the ion kinetic physics associated with quasi steady-state reconnection in the magnetotail. The simulations encompass a significant portion (20¿120 RE) of the tail. After formation of transient plasmoids, the results show the features of fast Petschek-type reconnection. There are two pairs of thin transition layers attached to the x-point which divert and accelerate the flow within a few ion inertial lengths. These transition layers do not quite conform to the properties of the expected slow shocks. The reason for this appears to be the fact that the ion dissipation scale is comparable to the thickness of the developing plasma sheet. As a result, we find signatures of only partially thermalized, counterstreaming ions in what resembles the plasma sheet boundary layer. A fast ion beam forms immediately upstream of the boundary layer. The results are consistent with the notion that slow shocks or similar transition layers are responsible for the heating and formation of the central plasma sheet and for the ion beams observed in the plasma sheet boundary layer. ¿ American Geophysical Union 1995