A new concept for estimating potential and actual values of daily transpiration rate of vegetation canopies is presented along with results of an initial test. The method is based on a physical foundation of spectral radiation balance for a vegetation canopy, the key inputs to the model being the remotely sensed spectral reflectance and the surface temperature of the plant canopy. The radiation interception or absorptance is estimated more directly from remotely sensed spectral data than it is from the leaf area index. The potential daily transpiration is defined as a linear function of the absorbed solar radiation, which can be estimated using a linear relationship between the fraction absorptance of solar radiation and the remotely sensed Soil Adjusted Vegetation Index for the canopy. The actual daily transpiration rate is estimated by combining this concept with the Jackson-Idso Crop Water Stress Index, which also can be calculated from remotely sensed plant leaf temperatures measured by infrared thermometry. An initial demonstration with data sets from an alfalfa crop and a rangeland suggests that the method may give reasonable estimates of potential and actual values of daily transpiration rate over diverse vegetation area based on simple remote sensing measurements and basic meteorological parameters.