III-nitride devices are described with recessed gates. In some embodiments, the material around the gates is formed by epitaxially depositing different III-nitride layers on a substrate and etching through at least the top two layers in the gate region. Because adjacent layers in the top three layers of the structure have different compositions, some of the layers act as etch stops to allow for precision etching. In some embodiments, a regrowth mask is used to prevent growth of material in the gate region. A gate electrode is deposited in the recess.