Several gateway-based congestion control mechanisms have been proposed to support an end-to-end congestion control mechanism of TCP (Transmission Control Protocol). One of promising gateway-based congestion control mechanisms is a RED (Random Early Detection) gateway. Although effectiveness of the RED gateway is fully dependent on a choice of control parameters, it has not been fully investigated how to configure its control parameters. In this paper, we analyze the steady state behavior of the RED gateway by explicitly modeling the congestion control mechanism of TCP. We first derive the equilibrium values of the TCP window size and the buffer occupancy of the RED gateway. Also derived are the stability condition and the transient performance index of the network using a control theoretic approach. Numerical examples as well as simulation results are presented to clearly show relations between control parameters and the steady state behavior.