A method for counteracting increases in resistivity encountered when Indium Oxide resistive layers are subjected to high temperature annealing steps during semiconductor device fabrication. The method utilizes a recovery annealing step which returns the Indium Oxide layer to its original resistivity after a high temperature annealing step has caused the resistivity to increase. The recovery anneal comprises heating the resistive layer to a temperature between 100.degree. C. and 300.degree. C. for a period of time that depends on the annealing temperature. The recovery is observed even when the Indium Oxide layer is sealed under a dielectric layer.