1. Hydrolysis of peptides has been measured in isolated rat small intestine perfused with a pancreatic digest of lactalbumin in the presence of 2,4-dinitrophenol.

2. Although transport of water and amino acids was severely inhibited by 2,4-dinitrophenol, peptide hydrolysis to free amino acids was apparently unimpaired.

3. Only a small fraction of the hydrolysis observed could be accounted for by leakage of enzymes into the lumen.

4. The results show that the brush-border enzymes proximal to the transport mechanism(s) can be an important site of hydrolysis of peptides to amino acids under conditions where the transport of unhydrolysed peptides is inhibited. The results are consistent with the concept of membrane (contact) digestion, although the significance of intracellular hydrolysis and of transmural transport of intact peptides is also discussed.

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