After a report which challenged the generally-held view that renal-transplant recipients have a psychological advantage compared with patients who undergo dialysis, we surveyed the quality of life and psychological distress in all patients who were managed by renal transplantation or dialysis at The Royal Newcastle Hospital Renal Unit. A questionnaire was mailed to patients which covered demographic daily illness severity; the quality of life (satisfaction with life in general, general health, and sexual, family and social relationships); a 28-item general-health questionnaire; a life-event schedule; and a locus-of-control scale. The response rate was 88%. Data were obtained on 138 subjects of whom half (69 subjects) were renal-transplant recipients. The other 69 patients were divided between those who underwent haemodialysis at home (24 patients); those who underwent haemodialysis in a hospital centre (24 patients); and those who underwent continuous ambulatory peritoneal dialysis (21 patients). The study showed that while transplant recipients rated highest in the various aspects of quality of life, that of patients who underwent haemodialysis at home was nearly equivalent. Although patients with continuous ambulatory peritoneal dialysis were ranked third in terms of their quality of life, this clearly exceeded that of the group that underwent haemodialysis in a hospital centre, which generally shared very-similar demographic characteristics. Contrary to general expectations, no clear difference was found across the four treatment modalities in the proportion of patients who were disturbed psychologically or who had a history of treatment for "nervous" problems. The results confirm the superiority of renal transplantation in the treatment of end-stage renal disease but highlights the role of continuous ambulatory peritoneal dialysis as a well-tolerated alternative in the treatment of end-stage renal disease.