  The nonlinear sigma model for which the field takes its values in the coset
space $O(1,2)/O(2)\times Z_2$ is similar to quantum gravity in being
perturbatively nonrenormalizable and having a noncompact curved configuration
space. It is therefore a good model for testing nonperturbative methods that
may be useful in quantum gravity, especially methods based on lattice field
theory. In this paper we develop the theoretical framework necessary for
recognizing and studying a consistent nonperturbative quantum field theory of
the $O(1,2)/O(2)\times Z_2$ model. We describe the action, the geometry of the
configuration space, the conserved Noether currents, and the current algebra,
and we construct a version of the Ward-Slavnov identity that makes it easy to
switch from a given field to a nonlinearly related one. Renormalization of the
model is defined via the effective action and via current algebra. The two
definitions are shown to be equivalent. In a companion paper we develop a
lattice formulation of the theory that is particularly well suited to the sigma
model, and we report the results of Monte Carlo simulations of this lattice
model. These simulations indicate that as the lattice cutoff is removed the
theory becomes that of a pair of massless free fields. Because the geometry and
symmetries of these fields differ from those of the original model we conclude
that a continuum limit of the $O(1,2)/O(2)\times Z_2$ model which preserves
these properties does not exist.
