A method of producing sodium hydroxide and chlorine using an electrolytic cell which is divided into an anode chamber and a cathode chamber by an ion-exchange membrane such that said cell operates as a two-chamber cell, said method comprising forming an electrolytic cell comprising an anode installed in said anode chamber, and a liquid retention layer and a gas diffusion electrode installed in said cathode chamber, said liquid retention layer having a structure selected from the group consisting of a mesh, a plain weave, a woven fabric, a nonwoven article, a foam, a thin sheet in which one side thereof has a plurality of concavities, and a thin sheet having a plurality of penetrations therethrough, the structure being formed of a material selected from the group consisting of perfluoroalkoxy alkane (PFA) resin and aramid resin, conducting an electrolysis reaction within said cell wherein brine is supplied into said anode chamber and an oxygen-containing gas is supplied into said cathode chamber, respectively;
- and placing said liquid retention layer, having a liquid retention amount per unit volume of the liquid retention layer of 0.15 g-H2O/cm3 or more and 0.61 g-H2O/cm3 or less, between said ion-exchange membrane and said gas diffusion electrode.