The unsaturated permeability function is an important soil property function used in the numerical modeling of saturated–unsaturated soil systems. The permeability function is generally predicted by integrating along the soil-water characteristic curve (SWCC) starting at saturated soil conditions. The integration is based on a particular integral formula. The Fredlund–Xing–Huang permeability function is a flexible integration technique used for calculating the unsaturated permeability function. The original permeability theory published by Fredlund, Xing, and Huang in 1994 specified that the air-entry value (AEV), ψaev, be used as the lower limit of the integration when calculating the permeability function. However, as there was no analytical procedure available for the calculation of the AEV on the SWCC, it became common practice to start the integration procedure from a value near zero. The assumption was made that the error associated with starting the integration from an arbitrary low value was minimal. While this might be the case in some situations, the error can be quite substantial in other situations. This paper undertakes a study of the effect of the lower limit of integration on the calculation of the permeability function. Comparisons are made between starting the integration from various values below the AEV and starting the integration from the calculated AEV, ψaev. A mathematical algorithm is also proposed for the calculation of the AEV for integration purposes. The results show that the relative coefficient of permeability can be significantly underestimated when the lower limit of integration is smaller than the AEV. The recommendation is that the AEV always be used as the lower limit of integration in the Fredlund–Xing–Huang permeability equation.