A new form of the one-equation turbulence model has been developed and verified by application to fully developed turbulent flow in smooth, bare rod bundles. The present model allows for the effect of anisotropic eddy viscosities on turbulent flow quantities. The finite element method has been used to predict local values of velocity and turbulent kinetic energy right up to the wall. A variational principle is applied to develop the finite element relationships. The resulting set of nonlinear algebraic equations for the nodal parameters is linearized by the successive-substitution scheme and solved by the frontal solution technique. The numerical results are shown to be in good agreement with available experimental data.