beta-Glucuronidase activity determined in 100 diluted bile samples from 12 rats with bile duct fistula by using phenolphthalein glucuronide as substrate incubated at 56 degrees C and pH 6 was 636 +/- 650 (mean +/- S.D.) modified Sigma units/ml. The enzyme had an optimal pH of 6.0 and was inhibited slightly by cholate by markedly by chenodeoxycholate and deoxycholate. The biliary beta-glucuronidase had, thus, low activity under normal physiologic condition because of the high pH (8.1) and high bile salt content (20 mumoles/ml) of the bile. The enzyme kinetic studies revealed that the direct bilirubin was a competitive inhibitor to phonolphthalein glucuronide for the enzyme. The affinity of the former to the enzyme was 163 times that of the latter. The studies provided a method for measuring the true activity of biliary beta-glucuronidase (Vmax) devoid of interfering factors by measuring the enzyme velocity (v) in the diluted bile with at least five different concentrations of substrate (s). The plotting of (1/v) vs. (1/s) should yield the y intercept or (1/Vmax).