We have developed highly strained InGaAs quantum wells (QWs) with a 1.3 μm-band emission on a low indium content InGaAs ternary substrate using low temperature metal-organic vapor phase epitaxy (MOVPE). The indium content of the substrate is 0.1, and this has the advantage of providing good thermal conductivity and good crystal quality. In this study, we newly introduced a binary GaAs barrier layer for strain compensation. We performed photoluminescence (PL) and transmission electron microscope (TEM) measurements to confirm that the crystal quality had improved. We realized a broad area laser with GaAs strain compensation that achieved low threshold current operation.