diff --git a/kite/api/v1/controllers/controller.py b/kite/api/v1/controllers/controller.py
index 4d1ef80..d878203 100644
--- a/kite/api/v1/controllers/controller.py
+++ b/kite/api/v1/controllers/controller.py
@@ -12,6 +12,7 @@
 
 import pecan
 
+from kite.api.v1.controllers import group as group_controller
 from kite.api.v1.controllers import key as key_controller
 from kite.api.v1.controllers import ticket as ticket_controller
 
@@ -27,6 +28,7 @@ class Controller(object):
                     'href': '%s/v1/' % pecan.request.host_url,
                     'rel': 'self'}]}
 
+    groups = group_controller.GroupController()
     keys = key_controller.KeyController()
     tickets = ticket_controller.TicketController()
 
diff --git a/kite/api/v1/controllers/group.py b/kite/api/v1/controllers/group.py
new file mode 100644
index 0000000..e089eaa
--- /dev/null
+++ b/kite/api/v1/controllers/group.py
@@ -0,0 +1,36 @@
+# Licensed under the Apache License, Version 2.0 (the "License"); you may
+# not use this file except in compliance with the License. You may obtain
+# a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+# WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+# License for the specific language governing permissions and limitations
+# under the License.
+
+import pecan
+from pecan import rest
+import wsme
+import wsmeext.pecan as wsme_pecan
+
+from kite.api.v1 import models
+
+
+class GroupController(rest.RestController):
+
+    @wsme_pecan.wsexpose(models.Group, wsme.types.text)
+    def put(self, name):
+        pecan.request.storage.create_group(name)
+        return models.Group(name=name)
+
+    @wsme_pecan.wsexpose(None, wsme.types.text, status_code=204)
+    def delete(self, name):
+        pecan.request.storage.delete_group(name)
+
+    @wsme.validate(models.GroupKey)
+    @wsme_pecan.wsexpose(models.GroupKey, body=models.GroupKeyRequest)
+    def post(self, group_request):
+        group_request.verify()
+        return group_request.new_response()
diff --git a/kite/api/v1/models/__init__.py b/kite/api/v1/models/__init__.py
index ee2cf26..3236785 100644
--- a/kite/api/v1/models/__init__.py
+++ b/kite/api/v1/models/__init__.py
@@ -10,12 +10,14 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
-from kite.api.v1.models import key
-from kite.api.v1.models import ticket
+from kite.api.v1.models.group import *  # noqa
+from kite.api.v1.models.key import *  # noqa
+from kite.api.v1.models.ticket import *  # noqa
 
-KeyInput = key.KeyInput
-KeyData = key.KeyData
-Ticket = ticket.Ticket
-TicketRequest = ticket.TicketRequest
-
-__all__ = [KeyInput, KeyData, Ticket, TicketRequest]
+__all__ = ['Group',
+           'GroupKey',
+           'GroupKeyRequest',
+           'KeyInput',
+           'KeyData',
+           'Ticket',
+           'TicketRequest']
diff --git a/kite/api/v1/models/base.py b/kite/api/v1/models/base.py
index e7d1859..f0e7598 100644
--- a/kite/api/v1/models/base.py
+++ b/kite/api/v1/models/base.py
@@ -55,9 +55,10 @@ def malformed(msg):
 class Endpoint(object):
     """A source or destination for a ticket."""
 
-    def __init__(self, endpoint_str):
+    def __init__(self, endpoint_str, group=None):
         self._cache = dict()
         self._set_endpoint(endpoint_str)
+        self._group = group
 
     @malformed('endpoint')
     def _set_endpoint(self, endpoint_str):
@@ -66,7 +67,9 @@ class Endpoint(object):
     @memoize
     def key_data(self):
         try:
-            return pecan.request.storage.get_key(self.host, self.generation)
+            return pecan.request.storage.get_key(self.host,
+                                                 self.generation,
+                                                 group=self._group)
         except exception.CryptoError:
             pecan.abort(500, "Failed to decrypt key for '%s:%s'. " %
                         (self.host, self.generation))
@@ -77,6 +80,10 @@ class Endpoint(object):
     def key(self):
         return self.key_data['key']
 
+    @property
+    def key_group(self):
+        return self.key_data['group']
+
     @property
     def key_generation(self):
         return self.key_data['generation']
@@ -96,6 +103,10 @@ class BaseRequest(wsme.types.Base):
         self._cache = dict()
         self.now = timeutils.utcnow()
 
+        # NOTE(jamielennox): This is essentially a class variable, however
+        # that confuses WSME.
+        self.destination_is_group = None
+
     @memoize
     @malformed("metadata")
     def meta(self):
@@ -104,12 +115,13 @@ class BaseRequest(wsme.types.Base):
     @memoize
     @malformed("source")
     def source(self):
-        return Endpoint(self.meta['source'])
+        return Endpoint(self.meta['source'], group=False)
 
     @memoize
     @malformed("destination")
     def destination(self):
-        return Endpoint(self.meta['destination'])
+        return Endpoint(self.meta['destination'],
+                        group=self.destination_is_group)
 
     @memoize
     @malformed("timestamp")
diff --git a/kite/api/v1/models/group.py b/kite/api/v1/models/group.py
new file mode 100644
index 0000000..7b0b67e
--- /dev/null
+++ b/kite/api/v1/models/group.py
@@ -0,0 +1,68 @@
+# Licensed under the Apache License, Version 2.0 (the "License"); you may
+# not use this file except in compliance with the License. You may obtain
+# a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+# WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+# License for the specific language governing permissions and limitations
+# under the License.
+
+import datetime
+
+import pecan
+import wsme
+
+from kite.api.v1.models import base
+from kite.common import exception
+
+
+class Group(wsme.types.Base):
+    name = wsme.wsattr(wsme.types.text, mandatory=True)
+
+
+class GroupKey(base.BaseResponse):
+
+    group_key = wsme.wsattr(wsme.types.text, mandatory=True)
+
+    def sign(self, key):
+        super(GroupKey, self).sign(key, self.group_key)
+
+    def set_group_key(self, rkey, group_key):
+        self.group_key = pecan.request.crypto.encrypt(rkey, group_key)
+
+
+class GroupKeyRequest(base.BaseRequest):
+
+    def __init__(self, **kwargs):
+        super(GroupKeyRequest, self).__init__(**kwargs)
+
+        seconds = int(pecan.request.conf.ticket_lifetime)
+        self.ttl = datetime.timedelta(seconds=seconds)
+        self.destination_is_group = True
+
+    def new_response(self):
+        response = GroupKey()
+
+        response.set_metadata(source=self.source.key_str,
+                              destination=self.destination.key_str,
+                              expiration=self.now + self.ttl)
+
+        response.set_group_key(self.source.key, self.destination.key)
+        response.sign(self.source.key)
+
+        return response
+
+    def verify(self):
+        super(GroupKeyRequest, self).verify()
+
+        # check that we are a group member
+        if self.source.host.split('.')[0] != self.destination.host:
+            pecan.abort(401, 'Not a group member')
+
+        # we can only request a group key for a group
+        if not self.destination.key_group:
+            raise exception.KeyNotFound(name=self.destination.host,
+                                        generation=self.destination.generation)
diff --git a/kite/common/storage.py b/kite/common/storage.py
index 5f4fd03..8d3d94e 100644
--- a/kite/common/storage.py
+++ b/kite/common/storage.py
@@ -10,6 +10,8 @@
 # License for the specific language governing permissions and limitations
 # under the License.
 
+import datetime
+
 from kite.common import crypto
 from kite.common import exception
 from kite.common import utils
@@ -22,30 +24,77 @@ class StorageManager(utils.SingletonManager):
     def get_key(self, name, generation=None, group=None):
         """Retrieves a key from the driver and decrypts it for use.
 
+        If it is a group key and it has expired or is not found then generate
+        a new one and return that for use.
+
         :param string name: Key Identifier
         :param int generation: Key generation to retrieve. Default latest
-
-        :return tuple (string, int): raw key data and the key generation
         """
-        key = dbapi.get_instance().get_key(name, generation=generation,
+        key = dbapi.get_instance().get_key(name,
+                                           generation=generation,
                                            group=group)
+        crypto_manager = crypto.CryptoManager.get_instance()
 
         if not key:
+            # host or group not found
             raise exception.KeyNotFound(name=name, generation=generation)
 
+        if group is not None and group != key['group']:
+            raise exception.KeyNotFound(name=name, generation=generation)
+
+        now = timeutils.utcnow()
         expiration = key.get('expiration')
-        if expiration:
-            now = timeutils.utcnow()
-            if expiration < now:
+
+        if key['group'] and expiration and generation is not None:
+            # if you ask for a specific group key generation then you can
+            # retrieve it for a little while beyond it being expired
+            timeout = expiration + datetime.timedelta(minutes=10)
+        elif key['group'] and expiration:
+            # when we can generate a new key we don't want to use an older one
+            # that is just going to require refreshing soon
+            timeout = expiration - datetime.timedelta(minutes=2)
+        else:
+            # otherwise we either have an un-expiring group or host key which
+            # we just check against now
+            timeout = expiration
+
+        if timeout and now >= timeout:
+            if key['group']:
+                # clear the key so it will generate a new group key
+                key = {'group': True}
+            else:
                 raise exception.KeyNotFound(name=name, generation=generation)
 
-        crypto_manager = crypto.CryptoManager.get_instance()
-        return {'key': crypto_manager.decrypt_key(name,
-                                                  enc_key=key['key'],
-                                                  signature=key['signature']),
-                'generation': key['generation'],
-                'name': key['name'],
-                'group': key['group']}
+        if 'key' in key:
+            dec_key = crypto_manager.decrypt_key(name,
+                                                 enc_key=key['key'],
+                                                 signature=key['signature'])
+            return {'key': dec_key,
+                    'generation': key['generation'],
+                    'name': key['name'],
+                    'group': key['group']}
+
+        if generation is not None or not key['group']:
+            # A specific generation was asked for or it's not a group key
+            # so don't generate a new one
+            raise exception.KeyNotFound(name=name, generation=generation)
+
+        # generate and return a new group key
+        new_key = crypto_manager.new_key()
+        enc_key, signature = crypto_manager.encrypt_key(name, new_key)
+        expiration = now + datetime.timedelta(minutes=15)
+
+        new_gen = dbapi.get_instance().set_key(name,
+                                               key=enc_key,
+                                               signature=signature,
+                                               group=True,
+                                               expiration=expiration)
+
+        return {'key': new_key,
+                'generation': new_gen,
+                'name': name,
+                'group': True,
+                'expiration': expiration}
 
     def set_key(self, name, key, expiration=None):
         """Encrypt a key and store it to the backend.
@@ -58,3 +107,9 @@ class StorageManager(utils.SingletonManager):
         return dbapi.get_instance().set_key(name, key=enc_key,
                                             signature=signature,
                                             group=False, expiration=expiration)
+
+    def create_group(self, name):
+        dbapi.get_instance().create_group(name)
+
+    def delete_group(self, name):
+        dbapi.get_instance().delete_host(name, group=True)
diff --git a/kite/db/connection.py b/kite/db/connection.py
index df875c0..1f126e8 100644
--- a/kite/db/connection.py
+++ b/kite/db/connection.py
@@ -61,3 +61,25 @@ class Connection(object):
                        - expiration: When the key expires (or None).
                                      Expired keys can be returned.
         """
+
+    @abc.abstractmethod
+    def create_group(self, name):
+        """Create a new group.
+
+        :param string name: The group name.
+
+        :returns bool: True if work was performed, False otherwise (eg if the
+                       group already existed).
+        """
+
+    @abc.abstractmethod
+    def delete_host(self, name, group=None):
+        """Delete a host or group.
+
+        :param string name: The host or group name.
+        :param bool group: (optional) If set only delete the host if it is (or
+                           is not if False) a group.
+
+        :returns bool: True if work was performed, False otherwise (eg deleting
+                       a group/host that never existed).
+        """
diff --git a/kite/db/kvs/api.py b/kite/db/kvs/api.py
index 6e0d967..515a301 100644
--- a/kite/db/kvs/api.py
+++ b/kite/db/kvs/api.py
@@ -68,3 +68,25 @@ class KvsDbImpl(connection.Connection):
 
         response.update(key_data)
         return response
+
+    def create_group(self, name):
+        if name in self._data:
+            return False
+
+        self._data[name] = {'name': name,
+                            'latest_generation': 0,
+                            'group': True}
+        return True
+
+    def delete_host(self, name, group=None):
+        try:
+            host = self._data[name]
+        except KeyError:
+            return False
+
+        if group is not None and host['group'] != group:
+            return False
+
+        del self._data[name]
+
+        return True
diff --git a/kite/db/sqlalchemy/api.py b/kite/db/sqlalchemy/api.py
index 8d03c61..e67001d 100644
--- a/kite/db/sqlalchemy/api.py
+++ b/kite/db/sqlalchemy/api.py
@@ -16,6 +16,7 @@ from sqlalchemy.orm import exc
 from kite.common import exception
 from kite.db import connection
 from kite.db.sqlalchemy import models
+from kite.openstack.common.db import exception as db_exc
 from kite.openstack.common.db.sqlalchemy import session as db_session
 
 CONF = cfg.CONF
@@ -76,6 +77,27 @@ class SqlalchemyDbImpl(connection.Connection):
 
         return host.latest_generation
 
+    def _get_group_data(self, session, name):
+        """Return data about a group.
+
+        In the case of getting a key where there is a Group defined but no key
+        has yet been defined we are supposed to return the group data without
+        a key. This is a difficult query to write as an all in one. This
+        function is called when we fail to find a key, to return group data
+        if the request host is a group.
+        """
+        query = session.query(models.Host.name)
+        query = query.filter(models.Host.group == True)
+        query = query.filter(models.Host.name == name)
+
+        try:
+            result = query.one()
+        except exc.NoResultFound:
+            return None
+        else:
+            return {'name': result.name,
+                    'group': True}
+
     def get_key(self, name, generation=None, group=None):
         session = get_session()
 
@@ -95,7 +117,10 @@ class SqlalchemyDbImpl(connection.Connection):
         try:
             result = query.one()
         except exc.NoResultFound:
-            return None
+            if group is not False and generation is None:
+                return self._get_group_data(session, name)
+            else:
+                return None
 
         return {'name': result.Host.name,
                 'group': result.Host.group,
@@ -103,3 +128,28 @@ class SqlalchemyDbImpl(connection.Connection):
                 'signature': result.Key.signature,
                 'generation': result.Key.generation,
                 'expiration': result.Key.expiration}
+
+    def create_group(self, name):
+        session = get_session()
+
+        try:
+            with session.begin():
+                group = models.Host(name=name, latest_generation=0, group=True)
+                session.add(group)
+        except db_exc.DBDuplicateEntry:
+            # an existing group of this name already exists.
+            return False
+
+        return True
+
+    def delete_host(self, name, group=None):
+        session = get_session()
+
+        with session.begin():
+            query = session.query(models.Host).filter(models.Host.name == name)
+            if group is not None:
+                query = query.filter(models.Host.group == group)
+
+            count = query.delete()
+
+        return count > 0
diff --git a/kite/tests/api/base.py b/kite/tests/api/base.py
index 2d22f27..3a3a5d1 100644
--- a/kite/tests/api/base.py
+++ b/kite/tests/api/base.py
@@ -64,7 +64,7 @@ class BaseTestCase(base.BaseTestCase):
         self.app = pecan.testing.load_test_app(self.app_config)
         self.addCleanup(pecan.set_config, {}, overwrite=True)
 
-    def request(self, url, method, expected_status=None, **kwargs):
+    def request(self, url, method, **kwargs):
         try:
             json = kwargs.pop('json')
         except KeyError:
diff --git a/kite/tests/api/v1/base.py b/kite/tests/api/v1/base.py
index bbf5492..6824b02 100644
--- a/kite/tests/api/v1/base.py
+++ b/kite/tests/api/v1/base.py
@@ -27,3 +27,6 @@ class BaseTestCase(base.BaseTestCase):
 
     def put(self, url, *args, **kwargs):
         return super(BaseTestCase, self).put(v1_url(url), *args, **kwargs)
+
+    def delete(self, url, *args, **kwargs):
+        return super(BaseTestCase, self).delete(v1_url(url), *args, **kwargs)
diff --git a/kite/tests/api/v1/test_group_crud.py b/kite/tests/api/v1/test_group_crud.py
new file mode 100644
index 0000000..5a864d9
--- /dev/null
+++ b/kite/tests/api/v1/test_group_crud.py
@@ -0,0 +1,27 @@
+# Licensed under the Apache License, Version 2.0 (the "License"); you may
+# not use this file except in compliance with the License. You may obtain
+# a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+# WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+# License for the specific language governing permissions and limitations
+# under the License.
+
+from kite.tests.api.v1 import base
+
+
+class GroupCrudTest(base.BaseTestCase):
+
+    def test_create_group(self):
+        self.put('/groups/test-name', status=200)
+        self.delete('/groups/test-name', status=204)
+
+    def test_double_create_group(self):
+        self.put('/groups/test-name', status=200)
+        self.put('/groups/test-name', status=200)
+
+    def test_delete_without_create_group(self):
+        self.delete('/groups/test-name', status=204)
diff --git a/kite/tests/db/test_groups.py b/kite/tests/db/test_groups.py
new file mode 100644
index 0000000..a652029
--- /dev/null
+++ b/kite/tests/db/test_groups.py
@@ -0,0 +1,31 @@
+# Licensed under the Apache License, Version 2.0 (the "License"); you may
+# not use this file except in compliance with the License. You may obtain
+# a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+# WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+# License for the specific language governing permissions and limitations
+# under the License.
+
+from testscenarios import load_tests_apply_scenarios as load_tests  # noqa
+
+from kite.tests.db import base
+
+TEST_NAME = 'test-name'
+
+
+class TestDbGroups(base.BaseTestCase):
+
+    def test_create_group(self):
+        self.assertTrue(self.DB.create_group(TEST_NAME))
+        self.assertFalse(self.DB.create_group(TEST_NAME))
+
+    def test_delete_group(self):
+        self.assertTrue(self.DB.create_group(TEST_NAME))
+        self.assertTrue(self.DB.delete_host(TEST_NAME))
+
+    def test_delete_without_create(self):
+        self.assertFalse(self.DB.delete_host(TEST_NAME))
diff --git a/tox.ini b/tox.ini
index 167b013..cb4b2fa 100644
--- a/tox.ini
+++ b/tox.ini
@@ -24,8 +24,9 @@ commands = python setup.py testr --coverage --testr-args='{posargs}'
 [flake8]
 # H803 skipped on purpose per list discussion.
 # E123, E125 skipped as they are invalid PEP-8.
+# E712 comparison to True should be 'if cond is True:' or 'if cond:', breaks some query generation
 
 show-source = True
-ignore = E123,E125,H803
+ignore = E123,E125,H803,E712
 builtins = _
-exclude=.venv,.git,.tox,dist,doc,*openstack/common*,*lib/python*,*egg,build
\ No newline at end of file
+exclude=.venv,.git,.tox,dist,doc,*openstack/common*,*lib/python*,*egg,build