The effect of chloride and diamide on angiotensin converting enzyme (ACE) activity from sheep kidney, lung and serum was investigated by using Hip-His-Leu as substrate. Optimum chloride concentrations were 400 -1000 mM for kidney, 700 mM for lung and 1000 mM for serum. Optimum chloride concentration increased ACE activity of serum and lung 1.70 folds and 2.73 folds respectively of the activity at physiological chloride concentrations, suggesting that the effect of salt on blood pressure may be due to the chloride sensitivity of ACE. The difference in effect of chloride on lung, kidney and serum ACE suggest that each tissue ACE has unique three dimentional structure. Increased pulmonary and serum ACE activity on pretreatment with diamide indicates that tissue oxidation may alter blood pressure.