Formaldehyde was utilized as an oxygen-centered nucleophile in an asymmetric oxy-Michael addition to gamma-hydroxy-alpha,beta-unsaturated carbonyl compounds using bifunctional organocatalysts through hemiacetal intermediates. The cyclic acetal product could be further transformed into beta-hydroxycarbonyl compounds, useful synthetic intermediates leading to various important target molecules. As such, this method is an example of a novel formal asymmetric hydration of alpha,beta-unsaturated carbonyl compounds.