Heat pipe performance can usually be improved by uniformly varying or grading wick permeability from end to end. A unique and cost effective method for grading the permeability of an axial groove heat pipe is described - selective chemical etching of the pipe casing. This method was developed and demonstrated on a proof-of-concept test article. The process improved the test article's performance by 50 percent. Further improvement is possible through the use of optimally etched grooves