The mutant strain Pseudomonas fluorescens TTC1 (NCIMB 40605), derived from the naphthalene-degrading Pseudomonas fluorescens N3 (NCIMB 40530), was used for the oxidation of 1- and 2-naphthols to give different isomers of dihydroxynaphthalene. The oxidation reactions proceed through the formation of dihydrodiol intermediates, which are too unstable to be isolated, since they spontaneously eliminate water to give the fully aromatic dihydroxynaphthalenes. The high regioselectivity of the dehydration reaction was confirmed by the study of the acid-catalysed aromatization of a series of stable monosubstituted naphthalene cis-1,2-dihydrodiols.