The characterisation of flow through porous media is important for all solid-liquid separation and fluid transport realms. The permeability of porous media can be anisotropic and furthermore, the extent of anisotropy can be increased as a result of an applied compressive force. However, the understanding of how anisotropy develops is incomplete. An overview of research on permeability anisotropy is given and an expression for predicting anisotropy as a function of void ratio is offered. The two underlying assumptions of the proposed model are: flow in different directions occurs within the same network of pores and deformation is primarily due to the compression of the particles in the direction of the applied force rather than due to particle rearrangement. The assumption of network connectivity allows permeability anisotropy to be described as a function of flow path tortuosity only. Results are presented for hydraulic anisotropy measured in lignite that has been upgraded by a compression dewatering method known as mechanical thermal expression. The lignite permeability is shown to be up to eight times greater in the direction perpendicular to compression, suggesting that the rate of dewatering could be significantly increased by choosing the drainage to also be perpendicular to the direction of the applied compressive force. It is illustrated that the proposed anisotropy model can be used to accurately predict the experimentally determined permeability anisotropy ratios for lignite, as well as for other materials including sand, clay and kaolin.