Catalyzes the oxidation of naphthalene dihydrodiol into 1,2-dihydroxynaphthalene. (1R,2S)-1,2-dihydronaphthalene-1,2-diol + NAD(+) = H(+) + NADH + naphthalene-1,2-diol cis-1,2-dihydroxy-1,2-dihydrodibenzothiophene + NAD(+) = 1,2-dihydroxydibenzothiophene + H(+) + NADH Aromatic compound metabolism; naphthalene degradation. Encoded on an unnamed 75 kb plasmid. Belongs to the short-chain dehydrogenases/reductases (SDR) family. Extended N-terminus.