A specific directing effect on the regiochemistry of oxymercuration has been exerted by a proximate urethane functionality during the oxymercuration of selected 0,y-unsaturated urethanes. This effect has been utilized in the synthesis of y-ketourethanes by reduction of initially formed oxymercurials with sodium borohydride followed by chromic acid oxidation, A mixture of products arising from spontaneous demercuration of an allylic mercurial has been obtained following oxymercuration of a dienic urethane.The oxymercuration reaction, combined with in situ reduction of the oxymercuric intermediate, provides a convenient mild method to achieve Markovnikov hydration of a carbon-carbon double bond.1 Additionally, for those cases where the rules of Markovnikov addition are not applicable, the synthetic utility of oxymercuration is often enhanced by the ability of proximate Lewis base groups to exert specific directing effects in promoting regioselective additions2 We here report a study of the utilization of such a directing effect in the synthesis of cyclic and bicyclic yketourethanes from &-punsaturated urethanes. Involved is a synthetic sequence of regioselective mercuric nitrate oxymercuration, sodium borohydride demercuration, and chromic acid oxidation.3 Hereafter, the sequence of reactions will be referred to as ketofunctionalization.