An experimental study of silica dissolution was performed to probe the evolution of permeability and porosity in siliceous diatomite during hot fluid injection such as water or steam flooding. Two competing mechanisms were identified. Silica solubility in water at elevated temperature causes rock dissolution thereby increasing permeability; however, the rock is mechanically weak leading to compressing of the solid matrix during injection. Permeability and porosity can decrease at the onset of fluid flow. A laboratory flow apparatus was designed and built to examine these processes in diatomite core samples.