diff --git a/src/groupdb.js b/src/groupdb.js
new file mode 100644
index 000000000..7317b496d
--- /dev/null
+++ b/src/groupdb.js
@@ -0,0 +1,75 @@
+'use strict';
+
+exports = module.exports = {
+    get: get,
+    add: add,
+    del: del,
+    count: count,
+
+    _clear: clear
+};
+
+var assert = require('assert'),
+    database = require('./database.js'),
+    debug = require('debug')('box:groupdb'),
+    DatabaseError = require('./databaseerror');
+
+var GROUPS_FIELDS = [ 'id', 'name' ].join(',');
+
+function get(groupId, callback) {
+    assert.strictEqual(typeof groupId, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    database.query('SELECT ' + GROUPS_FIELDS + ' FROM groups WHERE id = ?', [ groupId ], function (error, result) {
+        if (error) return callback(new DatabaseError(DatabaseError.INTERNAL_ERROR, error));
+        if (result.length === 0) return callback(new DatabaseError(DatabaseError.NOT_FOUND));
+
+        callback(null, result[0]);
+    });
+}
+
+function add(id, name, callback) {
+    assert.strictEqual(typeof id, 'string');
+    assert.strictEqual(typeof name, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    var data = [ id, name ];
+    database.query('INSERT INTO groupd (id, name) VALUES (?, ?)',
+           data, function (error, result) {
+        if (error && error.code === 'ER_DUP_ENTRY') return callback(new DatabaseError(DatabaseError.ALREADY_EXISTS, error));
+        if (error || result.affectedRows !== 1) return callback(new DatabaseError(DatabaseError.INTERNAL_ERROR, error));
+
+        callback(null);
+    });
+}
+
+function del(id, callback) {
+    assert.strictEqual(typeof id, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    database.query('DELETE FROM groups WHERE id = ?', [ id ], function (error, result) {
+        if (error) return callback(new DatabaseError(DatabaseError.INTERNAL_ERROR, error));
+        if (result.affectedRows !== 1) return callback(new DatabaseError(DatabaseError.NOT_FOUND));
+
+        callback(error);
+    });
+}
+
+function count(callback) {
+    assert.strictEqual(typeof callback, 'function');
+
+    database.query('SELECT COUNT(*) AS total FROM groups', function (error, result) {
+        if (error) return callback(new DatabaseError(DatabaseError.INTERNAL_ERROR, error));
+
+        return callback(null, result[0].total);
+    });
+}
+
+function clear(callback) {
+    database.query('DELETE FROM groups', function (error) {
+        if (error) return callback(new DatabaseError(DatabaseError.INTERNAL_ERROR, error));
+
+        callback(error);
+    });
+}
+
diff --git a/src/groups.js b/src/groups.js
new file mode 100644
index 000000000..7b25925a7
--- /dev/null
+++ b/src/groups.js
@@ -0,0 +1,91 @@
+/* jshint node:true */
+
+'use strict';
+
+exports = module.exports = {
+    GroupError: GroupError,
+
+    create: create,
+    remove: remove,
+    get: get
+};
+
+var assert = require('assert'),
+    DatabaseError = require('./databaseerror.js'),
+    uuid = require('node-uuid'),
+    _ = require('underscore');
+
+// http://dustinsenos.com/articles/customErrorsInNode
+// http://code.google.com/p/v8/wiki/JavaScriptStackTraceApi
+function GroupError(reason, errorOrMessage) {
+    assert.strictEqual(typeof reason, 'string');
+    assert(errorOrMessage instanceof Error || typeof errorOrMessage === 'string' || typeof errorOrMessage === 'undefined');
+
+    Error.call(this);
+    Error.captureStackTrace(this, this.constructor);
+
+    this.name = this.constructor.name;
+    this.reason = reason;
+    if (typeof errorOrMessage === 'undefined') {
+        this.message = reason;
+    } else if (typeof errorOrMessage === 'string') {
+        this.message = errorOrMessage;
+    } else {
+        this.message = 'Internal error';
+        this.nestedError = errorOrMessage;
+    }
+}
+util.inherits(GroupError, Error);
+GroupError.INTERNAL_ERROR = 'Internal Error';
+GroupError.ALREADY_EXISTS = 'Already Exists';
+GroupError.NOT_FOUND = 'Not Found';
+GroupError.BAD_NAME = 'Bad name';
+
+function validateGroupname(name) {
+    assert.strictEqual(typeof name, 'string');
+
+    if (name.length <= 2) return new GroupError(GroupError.BAD_NAME, 'name must be atleast 3 chars');
+    if (name.length > 256) return new GroupError(GroupError.BAD_NAME, 'name too long');
+
+    return null;
+}
+
+function create(name, callback) {
+    assert.strictEqual(typeof name, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    var error = validateGroupname(name);
+    if (error) return callback(error);
+
+    groupdb.add(uuid.v4(), name, function (error) {
+        if (error && error.reason === DatabaseError.ALREADY_EXISTS) return callback(new GroupError(UserError.ALREADY_EXISTS));
+        if (error) return callback(new UserError(GroupError.INTERNAL_ERROR, error));
+
+        callback(null);
+    });
+}
+
+function remove(id, callback) {
+    assert.strictEqual(typeof id, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    groupdb.del(id, function (error) {
+        if (error && error.reason === DatabaseError.NOT_FOUND) return callback(new UserError(UserError.NOT_FOUND));
+        if (error) return callback(new UserError(UserError.INTERNAL_ERROR, error));
+
+        callback(null);
+    });
+}
+
+function get(id, callback) {
+    assert.strictEqual(typeof id, 'string');
+    assert.strictEqual(typeof callback, 'function');
+
+    groupdb.get(id, function (error, result) {
+        if (error && error.reason === DatabaseError.NOT_FOUND) return callback(new UserError(UserError.NOT_FOUND));
+        if (error) return callback(new UserError(UserError.INTERNAL_ERROR, error));
+
+        return callback(null, result);
+    });
+}
+