A toxicity assay based on inhibition of β‐galactosidase biosynthesis was compared to a similar assay based on inhibition of β‐galactosidase activity. In both tests, Escherichia coli grown in a minimal medium was exposed to isopropyl‐β‐thiogalactoside to induce β‐galactosidase biosynthesis. The induction step preceded contact of cells with the toxicant in the enzyme activity assay, whereas in the enzyme biosynthesis test, the inducer was added following contact of cells with the toxicant. Relative sensitivity was judged on the basis of responses to the heavy metals Hg2+, Cu2+, and Cd2+, and the organics 3,4‐dichlorophenol, formaldehyde, Hydrothol, phenol, sodium dodecyl sulphate, and toluene. Comparison of these results to the IC50s achieved with other microbial systems, Daphnia bioassay, and fish bioassay indicates that the enzyme activity test was moderately sensitive to heavy metals but was insensitive to organic toxicants. The test based on inhibition of enzyme biosynthesis was sensitive to both heavy metals and toxic organics.