Kinetic theory of dissipative particle dynamics is developed in terms of a
Boltzmann pair collision theory. The kinetic transport coefficients are com
puted from explicit collision integrals and compared favourably with detail
ed simulations. Previous theory is found to correspond to a weak scattering
limit, or Vlasov theory, and previously reported discrepancies with simula
tions are thereby largely resolved. In the large dissipation limit, we find
that qualitatively new scaling behaviour for the transport coefficients is
indicated.