Nanoholes with a diameter of 100 nm were produced in GaAs substrates by atomic force microscope (AFM) oxidation and subsequent thermal annealing. Substrate surfaces modified in this fashion could potentially be used as nanotemplates for positioning of InAs quantum dots (QDs). The density of InAs QDs decreased with postdeposition annealing temperature and a density of 4.0 X 10(8) cm(-2) was obtained following an anneal at 550 degreesC. Lateral positioning of InAs QDs was demonstrated using the nanotemplate substrates and the postdeposition annealing. (C) 2004 Published by Elsevier B.V.