In0.52Al0.48As epilayers grown by molecular beam epitaxy (MBE) at low temperatures typically possess resistivities of more than 10(5) OMEGA cm. We propose the use of such highly resistive epilayers to vertically isolate different devices on InP substrates. We demonstrate that high performance In0.52Ga0.24Al0.24As/In0.53Ga0.47As heterojunction bipolar transistors can be grown' on top of such high resistivity buffer In0.52Al0.48As layers. Such HBTs have dc current gains of 1000 and emitter-base pn junctions with ideality factors of 1.05. However, the MBE growth conditions required to obtain such good material are quite critical. We describe these conditions and also the electrical properties of both the HBTs and the resistive InAlAs layers.