Isolation characteristics, which are important factors in designing GaAs ICs, are investigated focusing on leak current between circuit elements on a semi-insulating substrate and on the sidegating effect that results from leak current between MESFETs. We have found that the large leak current comes from the projecting edge, located outside the channel, of the gate electrode and that this leak current is the main cause of the sidegating effect. By taking into account quantitatively evaluated isolation characteristics, we can improve LSI design rules to reproducible and reliable operation.