Reduction of 2, 6-diacetoxy-2′-bromoacetophenone (10) with NaBH4 led to 3, 4- diacetoxydihydrobenzofuran (12) in a process involving acyl migration followed by cyclization. Subsequent hydrogenolysis gave 4-acetoxydihydrobenzofuran which, upon saponification, afforded 4-hydroxydihydrobenzofuran (8) in good yield. This approach is shown to be a general method for preparation of substituted dihydrobenzofurans.