We propose a model for the lateral connectivity of orientation-selecti
ve cells in the visual cortex. We study the properties of the input si
gnal to the visual cortex and find new statistical structures that hav
e not been processed in the retino-geniculate pathway. Using the idea
that the system performs redundancy reduction of the incoming signals,
we derive the lateral connectivity that will achieve this for a set o
f orientation-selective local circuits, as well as the complete spatia
l structure of a network composed of such circuits. We compare the res
ults with various physiological measurements.