The bottom cladding design of semipolar III-nitride laser diodes is limited by stress relaxation via misfit dislocations that form via the glide of pre-existing threading dislocations (TDs), whereas the top cladding is limited by the growth time and temperature of the p-type layers. These design limitations have individually been addressed by using limited area epitaxy (LAE) to block TD glide in n-type AlGaN bottom cladding layers and by using transparent conducting oxide (TCO) top cladding layers to reduce the growth time and temperature of the p-type layers. In addition, a TCO-based top cladding should have significantly lower resistivity than a conventional p-type (Al)GaN top cladding. In this work, LAE and indium-tin-oxide cladding layers are used simultaneously in a (202⎯⎯1) III-nitride laser structure. Lasing was achieved at 446 nm with a threshold current density of 8.5 kA/cm2 and a threshold voltage of 8.4 V.