The dynamic equation of motion that governs the laminar flow of water through soils is the empirical equation of Darcy. According to Darcy's equation the velocity of the flowing water is proportional to the hydraulic gradient under which the water is flowing, with the constant of proportionality being the coefficient of permeability. The interesting question arising is whether or not the coefficient of permeability is a scalar quantity (having only a magnitude) or a vector (having both magnitude and direction). It is proved, in the present paper, that the permeability coefficient is neither a scalar nor a vector but a symmetric tensor of second rank. The fact that the permeability tensor is symmetric gives rise to great simplifications and permits a simple graphical construction of the tensor ellipsoid. Having the tensor ellipsoid, the determination of the direction at which the water will flow under a known imposed hydraulic gradient can be found graphically. In case of isotropic soils (the permeability coefficient has the same value along any direction) the ellipsoid reduces to a sphere and the tensor becomes a scalar. In the general case of anisotropic soils the permeability tensor is an entity with nine elements, six of which are independent representing pure extension or contraction along the three principal coordinate axes, thus transforming the permeability sphere into an ellipsoid and vice versa. It should be noted that in anisotropic soils the only directions along which the flow takes place in the direction of the hydraulic gradient are those of the principal axes of the tensor ellipsoid.