The rank of the Permian coals in the Gunnedah Basin has been analyzed using both petrographic and chemical methods. Apart from the effects of local igneous intrusions, a number of seams in the sequence have vitrinite reflectance values (R-vmax) that deviate significantly from the trend expected with a steady downward increase in coalification. Correlation of these anomalies with interpreted depositional environments suggests that abnormally low vitrinite reflectance values in the sequence occur in seams either overlain by or intimately associated with marine strata. The three-dimensional distribution of such low reflectance values, in part of the section at least, can be related either to the lithofacies pattern or post-depositional groundwater flow associated with a major fan-delta system. Coals with anomalously high vitrinite reflectance values appear to contain material described elsewhere as pseudovitrinite, a component not previously reported in Australian Permian bituminous coals. Both low-value and high-value anomalies need to be taken into account when interpreting maturation patterns from vitrinite reflectance data. In some cases other rank indicators such as air-dried moisture may be useful to complement vitrinite reflectance in rank studies of high volatile bituminous coals. Abnormally low vitrinite reflectance values due to environmental factors such as marine influence, on the other hand, may be used to identify flooding-surface sequence boundaries in the basin for stratigraphic and sedimentological investigations.