A method for fabricating a lateral gallium nitride (GaN) field-effect transistor includes forming a first and second GaN layer coupled to a substrate, removing a first portion of the second GaN layer to expose a portion of the first GaN layer, and forming a third GaN layer coupled to the second GaN layer and the exposed portion of the first GaN layer. The method also includes removing a portion of the third GaN layer to expose a portion of the second GaN layer, forming a source structure coupled to the third GaN layer. A first portion of the second GaN layer is disposed between the source structure and the second GaN layer. A drain structure is formed that is coupled to the third GaN layer or alternatively to the substrate. The method also includes forming a gate structure coupled to the third GaN layer such that a second portion of the third GaN layer is disposed between the gate structure and the second GaN layer.