We report magnetotransport properties of a two-dimensional electron gas confined at MgZnO/ZnO heterointerface in a high magnetic field up to 26 T. High electron mobility and low charge carrier density enabled the observation of the fractional quantum Hall state ν = 1/3. For an even lower charge carrier density, we observe a transition from quantum Hall liquid to an insulator below the filling factor 1/3. Because of the large electron effective mass in ZnO, we suggest the MgZnO/ZnO heterostructures to be a prototype system for highly correlated quantum Hall physics
