GaN-based power transistors are rapidly developing as a contender for application in next generation high efficiency power electronics. They are either lateral devices like HEMTs or vertical devices of the form of the Current Aperture Vertical Electron Transistor (CA VET) [1, 2]. A CAVET (Fig.I) is a vertical device with source and gate on top and a current aperture that allows current to flow vertically down from the source to the drain. It has a current blocking layer (CBL) to block current flowing vertically through any other path but the aperture. The process flow for fabricating a CA VET is illustrated in figure 2. One way to achieve the current blocking layer is by implanting the layer with [Mg]-ion. However the difficulty in using a Mg-implanted barrier layer was the unintentional diffusion of the Mg into the overlying channel region (see Fig.3). This caused a significant threshold voltage shift in devices and in many cases the electrons in the channel were trapped or completely depleted by diffusing Mg acceptors. In this paper we report on successfully addressing this critical problem by using MBE to re-grow the channel containing the 2DEG on top of the n drift region that is grown by MOCVD resulting in devices free of dispersion (80μs pulse width) and Ron less than 2.5 mΩ-cm2. Here the advantages of MBE, that of a low growth temperature and hence suppressed Mg diffusion, is combined with the advantages of MOCVD, that of a high growth rate of high purity material necessary for the thick drift region to support high voltage required in power electronics.