We present the linear stability analysis of horizontal Poiseuille flow in a fluid overlying a porous medium with anisotropic and inhomogeneous permeability. The generalized Darcy model is used to describe the flow in the porous medium with the Beavers-Joseph condition at the interface of the two layers and the eigenvalue problem is solved numerically. The effect of major system parameters on the stability characteristics is addressed in detail. It is shown that the anisotropic and inhomogeneous modulation of the permeability of the underlying porous layer provides an effective means for passive control of the flow stability.