4-Hydroxy-2-methyl-1-oxo-1,2-dihydroisoquinoline-3-carboxylic acid derivatives 1 in solution afford a mixture of the dealkoxycarbonylated product 2 and 4-hydroxy-2-methyl-1,3-dioxo-1,2,3,4-tetrahydroisoquinoline-4-carboxylic acid derivatives 3. Reactions 1→3 involve compounds 1 tautomerization, C-3 hydroxylation and final α-ketol type rearrangement. The synthetic utility of this transformation was explored.
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