The factors which influence the steady state performance of a CSTR operation with microencapsulated urease for the regeneration of a dialysated solution have been studied at various enzyme activities. The theoretical model considered the effect of microcapsule diameter, pH-dependent kinetics, and product inhibition and substrate depletion, in relation to urea conversion and the capsule effectiveness factor. The limiting effects of pH, product inhibition and substrate depletion were also studied individually and in combination under eight case studies. The base case which included these three limiting factors in the reaction process, predicted the lowest urea conversion values at the enzyme activities considered. However, the effectiveness factor for each case at a fixed microcapsule diameter depended on the enzyme activity. This behaviour was studied for two different microcapsule diameters, 5 microns and 500 microns. At enzyme activities lower than 1 mM/s, a model considering Michaelis-Menten kinetics alone, predicted the highest effectiveness factors. On the other hand, beyond 1 mM/s enzyme activity, the lowest effectiveness factors were predicted, although higher conversions than that of the base case were achieved. This might be due to the rapid depletion of substrate at high activities when Michaelis-Menten kinetics were considered, leads to residual substrate concentrations (Sr) lower than the Michaelis-Menten constant Km,o; a condition for a dramatic drop in the intraparticle reaction rate. The limiting factors in the base case held Sr at a relatively higher value than Km,o.