We report high performance solution-deposited indium oxide thin film transistors with field-effect mobility of 127 cm^2/Vs and an Ion/Ioff ratio of 10^6. This excellent performance is achieved by controlling the hydroxyl group content in chemically derived aluminum oxide (AlOx) thin-film dielectrics. The AlOx films annealed in the temperature range of 250–350 °C showed higher amount of Al-OH groups compared to the films annealed at 500 °C, and correspondingly higher mobility. It is proposed that the presence of Al-OH groups at the AlOx surface facilitates unintentional Al-doping and efficient oxidation of the indium oxide channel layer, leading to improved device performance.