Triaxial deformation experiments were carried out on large (0.1 m) diameter cores of a porous sandstone in order to investigate the evolution of bulk sample permeability as a function of axial strain and effective confining pressure. The log permeability of each sample evolved via three stages: (1) a linear decrease prior to sample failure associated with poroelastic compaction, (2) a transient increase associated with dynamic stress drop, and (3) a systematic quasi-static decrease associated with progressive formation of new deformation bands with increasing inelastic axial strain. A quantitative model for permeability evolution with increasing inelastic axial strain is used to analyze the permeability data in the postfailure stage. The model explicitly accounts for the observed fault zone geometry, allowing the permeability of individual deformation bands to be estimated from measured bulk parameters. In a test of the model for Clashach sandstone, the parameters vary systematically with confining pressure and define a simple constitutive rule for bulk permeability of the sample as a function of inelastic axial strain and effective confining pressure. The parameters may thus be useful in predicting fault permeability and sealing potential as a function of burial depth and fault displacement.