Extended defect reduction at the surface of GaN grown by lateral epitaxial overgrowth (LEO) on large-area GaN/Al2O3 wafers by low pressure MOCVD is demonstrated by atomic force microscopy. The overgrown GaN has a rectangular cross section with smooth (0001) and {110} facets. The density of mixed character threading dislocations at the surface of the LEO GaN is reduced by at least 3-4 orders of magnitude from that of bulk GaN. Dislocation-free GaN surfaces exhibit an anisotropic step structure that is attributed to the orientation dependence of the dangling bond density at the step edges.