We propose a model for the lateral connectivity of orientation-selective cells in the visual cortex. We study the properties of the input signal to the visual cortex and find new statistical structures that have 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 of orientation-selective local circuits, as well as the complete spatial structure of a network composed of such circuits. We compare the results with various physiological measurements.