Abstract: The invention provides a faucet-mounted water filter comprising an upright tubular diverter body that is adapted to be secured to the open end of the water faucet. At the bottom of the diverter body is a water outlet through which unfiltered water can be dispensed. In the diverter body is a valve with a valve outlet duct projecting from one side of the diverter body. A manually movable valve handle projects from the diverter body and is connected to the valve for directing the flow of water either through the water outlet (when unfiltered water is required) or for diverting water through the outlet duct. A filter housing is mounted upon the duct and is preferably connected to the diverter by means of the duct. A carbon block filter element is provided in the filter housing which includes a vertical water inlet surface on an outside wall and a water outlet at the bottom. The filter housing includes an annular water distribution chamber for unfiltered water which surrounds the filter element.