Density functional theory calculations were conducted on the title reactions with explicit inclusion of a variety of water molecules. Concerted reaction paths were examined first in the reaction model, ester(H2O)n --> MeCOOH(H2O)(n-1)EtOH, with n = 1-4. Their Gibbs activation energies are much larger than the experimental value, and the concerted paths are unfavorable. Various stepwise paths were investigated, and the ester(H2O)4 reactant gives a likely stepwise path. The n = 4 based reaction models, n = 4 + 5 and n = 4 + 12, were found to have similar proton-relay shapes with good hydrogen-bond directionality. The distinction of either the concerted or the stepwise path is described by the position of only one proton in the "junction" water molecule.