A water filter assembly for a beverage dispenser having a reservoir is provided. The water filter assembly includes a filter medium extending along an axial direction and a housing enclosing the filter medium also extending along the axial direction. The housing includes a channel having an inlet proximate to a second end of housing for receipt of unfiltered water from the reservoir and extending to a position proximate a first end of housing. The channel is configured to provide unfiltered water to a location proximate the first end of housing such that an entire surface area of filter medium is utilized in filtering the water in reservoir to minimize a pressure drop across the water filter assembly during operation.