Data are presented on the 300 K (and 77 K) continuous photopumped laser operation of AlyGa1-yAs-GaAs-InxGa1-xAs quantum-well heterostructures (QWHs) that have been oxidized (H2O vapor + N2, 425-degrees-C) selectively along the high-band-gap heterolayers located on either side of a GaAs waveguide (WG) region with an InxGa1-xAs QW in its center. Transmission electron microscope images show that the oxide-embedded GaAs-InxGa1-xAs WG + QW active region remains unoxidized and thus is sandwiched between electrically insulating AlyGa1-yAs native oxide layers. The thresholds for photopumped 300 K continuous laser operation of the as-grown and oxide-embedded QWHs are approximately equal after differences in the Ar+-laser photopumping efficiencies are considered.