A nitride-based laser diode structure utilizing a metal-oxide (e.g., Indium-Tin-Oxide (ITO) or Zinc-Oxide (ZnO)) in place of p-doped AlGaN to form the upper cladding layer. An InGaN laser diode structure utilizes ITO upper cladding structure, with an SiO₂ isolation structure formed on opposite sides of the ITO upper cladding structure to provide a lateral index step that is large enough to enable lateral single-mode operation. The lateral index step is further increased by slightly etching the GaN:Mg waveguide layer below the SiO₂ isolation structure. An optional p-type current barrier layer (e.g., AlGaN:Mg having a thickness of approximately 20 nm) is formed between the InGaN-MQW region and a p-GaN upper waveguide layer to impede electron leakage from the InGaN-MQW region.