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Transparent conducting films of zinc oxide and indium-doped zinc oxide have been prepared by a simple and economical sol-gel technique. This process is feasible for the fabrication of high quality TCO thin films when the processing parameters are optimized. It was found that the out-diffusion of oxygen during the vacuum annealing step was a crucial factor to prepare thin layer with superior properties. Annealing lowers the resistivity down to 4.7 10 −3 Ω•cm for the 1 at.% doped films due to the liberation of high-valency In-dopants and the enhanced film density. At high indium concentrations, the free electron density stabilizes because an increasing number of dopant atoms form some kinds of neutral defects. The neutralized indium atoms do not contribute free electrons. The feasibility to deposit highly transparent ZnO thin films has been demonstrated.