The note in the Readme that the mod Alley of Murders by modder AmstradHero was not compatible was based on a user report that turns out to have been mistaken. I’ve just tested both mods together thoroughly and am very pleased to report that they are 100% compatible. I suspect the mistaken report was due to a long standing issue with Alley of Murders (reported since 2013) that would cause an infinite load screen upon trying to enter the alley. I discovered that this was caused by trying to install the .zip download of Alley of Murders with DAModder. Instead, you need to rename the .zip file download to .dazip and install using .daupdater, then it works perfectly.
I don’t often make recommendations (in fact, this may be my first one!), but if you like using mods to add content/quests to your DA:O game, I can recommend this one. I found it well done, balanced, and in keeping with the style and flavor of the original game, and I can see why there was such disappointment when it was originally thought that they were not compatible. Very happy that’s not the case.
Have fun everyone!