The effect of polarity on the optical and microstructural properties of GaN is presented. A sample with adjacent domains of Ga- and N-polarity material was grown by varying the nucleation layer. This allows a unique opportunity to study the two different polarities under controlled conditions. We found that the N-polarity material has a much lower dislocation density than the Ga-polarity material. The N-polarity material contains voids that are not present in the Ga-polarity region. The surface roughness of the N-polarity material appears to be caused by Ga-polarity inversion domains which lead the growth. A cathodoluminescence study showed that the N-polarity material is much brighter than the Ga-polarity material, suggesting a higher donor concentration, probably due to increased impurity incorporation in the [0001̄] growth direction or possibly due to an increase in intrinsic point defects. There is also evidence that the N-polarity region contains two types of material, one is flat and can be etched, the other has an inclined facet and does not etch.