Strong suppression of the effects caused by the internal electric field in ZnO/ZnMgO quantum wells following ion-implantation and rapid thermal annealing, is revealed by photoluminescence, time-resolved photoluminescence, and band structure calculations. The implantation and annealing induces Zn/Mg intermixing, resulting in graded quantum well interfaces. This reduces the quantum-confined Stark shift and increases electron -hole wavefunction overlap, which significantly reduces the exciton lifetime and increases the oscillator strength.