A Rh(III)-catalyzed highly efficient and regioselective functionalization of diverse C鈥揌 bonds of naphthylcarbamates for oxidative annulation with alkynes has been developed. The annulation with a neutral rhodium catalyst system proceeds through peri C鈥揌 bond functionalization of arylcarbamates to give benzoquinoline derivatives, while with a cationic rhodium catalyst system it proceeds through ortho C鈥揌 functionalization of arylcarbamates to furnish benzoindole derivatives.