A direct spectrophotometric pH indicator method has been devised to assay the activity of the D-Ala carboxypeptidase/transpeptidase of Streptomyces R61, and which should be of general application to D-Ala carboxypeptidases. The substrate employed is N,N'-diacetyl-L-lysyl-D-alanyl-D-lactate. The method allows the determination of steady-state kinetic parameters, and can also be used for the assay of the esterase activity of beta-lactamases against specific depsipeptides.