The original ranking algorithm in dot is recursive on clusters. This can produce fewer ranks and a more compact layout, but sometimes at the cost of a head node being place on a higher rank than the tail node. It also assumes that a node is not constrained in separate, incompatible subgraphs. For example, a node cannot be in a cluster and also be constrained by rank=same with a node not in the cluster.

If newrank=true, the ranking algorithm does a single global ranking, ignoring clusters. This allows nodes to be subject to multiple constraints. Rank constraints will usually take precedence over edge constraints.