A method for forming a light emitting diode (LED) uses aluminum-based material layers and oxidation during the LED formation. In some embodiments, the method may include forming an n-type layer of the LED on a substrate, forming at least one sidewall restriction layer of the LED on the substrate with the sidewall restriction layer comprising an aluminum-based material, forming a quantum well layer of the LED on the substrate, forming a p-type layer of the LED on the substrate, exposing the substrate to water vapor, and heating the substrate to oxidize at least an outer portion of the electron blocking layer. The aluminum-based material may include aluminum indium nitride or aluminum gallium arsenide.