Abstract: Methods are generally provided for forming a conductive oxide layer on a substrate by sputtering a target to deposit a transparent conductive oxide layer (e.g., comprising comprises cadmium, tin, and oxygen) on the substrate; positioning an anneal surface in close proximity to the transparent conductive oxide layer (e.g., about 3 cm or less); and, annealing the transparent conductive oxide layer while the anneal surface is in close proximity to the transparent conductive oxide layer (e.g., at an anneal temperature of about 500° C. to about 700° C.) to create a localized cadmium vapor between the transparent conductive oxide layer and the anneal surface. The anneal surface can include a material reactive with oxygen at the anneal temperature. Apparatus is also provided for annealing a thin film layer on a substrate.