diff --git a/.gitignore b/.gitignore
index 17e49b7b974a..f254e0545979 100644
--- a/.gitignore
+++ b/.gitignore
@@ -48,6 +48,7 @@ nova/vcsversion.py
 tools/conf/nova.conf*
 doc/source/_static/nova.conf.sample
 doc/source/_static/nova.policy.yaml.sample
+doc/source/_static/placement.policy.yaml.sample
 
  # Files created by releasenotes build
 releasenotes/build
diff --git a/doc/source/conf.py b/doc/source/conf.py
index b163e8d729a8..96557403fe20 100644
--- a/doc/source/conf.py
+++ b/doc/source/conf.py
@@ -57,8 +57,10 @@ bug_tag = ''
 config_generator_config_file = '../../etc/nova/nova-config-generator.conf'
 sample_config_basename = '_static/nova'
 
-policy_generator_config_file = '../../etc/nova/nova-policy-generator.conf'
-sample_policy_basename = '_static/nova'
+policy_generator_config_file = [
+    ('../../etc/nova/nova-policy-generator.conf', '_static/nova'),
+    ('../../etc/nova/placement-policy-generator.conf', '_static/placement')
+]
 
 actdiag_html_image_format = 'SVG'
 actdiag_antialias = True
diff --git a/doc/source/configuration/index.rst b/doc/source/configuration/index.rst
index 66081dcbf18c..7ebb6e72fd95 100644
--- a/doc/source/configuration/index.rst
+++ b/doc/source/configuration/index.rst
@@ -20,8 +20,8 @@ Configuration
 * :doc:`Sample Config File <sample-config>`: A sample config
   file with inline documentation.
 
-Policy
-------
+Nova Policy
+-----------
 
 Nova, like most OpenStack projects, uses a policy language to restrict
 permissions on REST API actions.
@@ -29,8 +29,20 @@ permissions on REST API actions.
 * :doc:`Policy Reference <policy>`: A complete reference of all
   policy points in nova and what they impact.
 
-* :doc:`Sample Policy File <sample-policy>`: A sample policy
-  file with inline documentation.
+* :doc:`Sample Policy File <sample-policy>`: A sample nova
+  policy file with inline documentation.
+
+Placement Policy
+----------------
+
+Placement, like most OpenStack projects, uses a policy language to restrict
+permissions on REST API actions.
+
+* :doc:`Policy Reference <placement-policy>`: A complete
+  reference of all policy points in placement and what they impact.
+
+* :doc:`Sample Policy File <sample-placement-policy>`: A sample
+  placement policy file with inline documentation.
 
 
 .. # NOTE(mriedem): This is the section where we hide things that we don't
@@ -43,3 +55,5 @@ permissions on REST API actions.
    sample-config
    policy
    sample-policy
+   placement-policy
+   sample-placement-policy
diff --git a/doc/source/configuration/placement-policy.rst b/doc/source/configuration/placement-policy.rst
new file mode 100644
index 000000000000..67b6cf6d557f
--- /dev/null
+++ b/doc/source/configuration/placement-policy.rst
@@ -0,0 +1,10 @@
+==================
+Placement Policies
+==================
+
+The following is an overview of all available policies in Placement.
+For a sample configuration file, refer to
+:doc:`/configuration/sample-placement-policy`.
+
+.. show-policy::
+   :config-file: etc/nova/placement-policy-generator.conf
diff --git a/doc/source/configuration/policy.rst b/doc/source/configuration/policy.rst
index 8fea1406e5c0..66b4c7982d3c 100644
--- a/doc/source/configuration/policy.rst
+++ b/doc/source/configuration/policy.rst
@@ -1,6 +1,6 @@
-========
-Policies
-========
+=============
+Nova Policies
+=============
 
 The following is an overview of all available policies in Nova.  For a sample
 configuration file, refer to :doc:`/configuration/sample-policy`.
diff --git a/doc/source/configuration/sample-placement-policy.rst b/doc/source/configuration/sample-placement-policy.rst
new file mode 100644
index 000000000000..12e21c52a489
--- /dev/null
+++ b/doc/source/configuration/sample-placement-policy.rst
@@ -0,0 +1,16 @@
+============================
+Sample Placement Policy File
+============================
+
+The following is a sample placement policy file for adaptation and use.
+
+The sample policy can also be viewed in :download:`file form
+</_static/placement.policy.yaml.sample>`.
+
+.. important::
+
+   The sample policy file is auto-generated from placement when this
+   documentation is built. You must ensure your version of placement matches
+   the version of this documentation.
+
+.. literalinclude:: /_static/placement.policy.yaml.sample
diff --git a/doc/source/configuration/sample-policy.rst b/doc/source/configuration/sample-policy.rst
index 0e4b699af792..1dc10e4749a3 100644
--- a/doc/source/configuration/sample-policy.rst
+++ b/doc/source/configuration/sample-policy.rst
@@ -1,6 +1,6 @@
-==================
-Sample Policy File
-==================
+=======================
+Sample Nova Policy File
+=======================
 
 The following is a sample nova policy file for adaptation and use.
 
diff --git a/etc/nova/README-policy.yaml.txt b/etc/nova/README-policy.yaml.txt
index b4a233bc32f9..7599f8071278 100644
--- a/etc/nova/README-policy.yaml.txt
+++ b/etc/nova/README-policy.yaml.txt
@@ -1,8 +1,24 @@
-To generate the sample policy.yaml file, run the following command from the top
-level of the nova directory:
+Nova
+====
+
+To generate the sample nova policy.yaml file, run the following command from
+the top level of the nova directory:
 
     tox -egenpolicy
 
-For a pre-generated example of the latest policy.yaml, see:
+For a pre-generated example of the latest nova policy.yaml, see:
 
     https://docs.openstack.org/nova/latest/configuration/sample-policy.html
+
+
+Placement
+=========
+
+To generate the sample placement policy.yaml file, run the following command
+from the top level of the nova directory:
+
+    tox -e genplacementpolicy
+
+For a pre-generated example of the latest placement policy.yaml, see:
+
+    https://docs.openstack.org/nova/latest/configuration/sample-placement-policy.html
diff --git a/etc/nova/placement-policy-generator.conf b/etc/nova/placement-policy-generator.conf
new file mode 100644
index 000000000000..a2e0697d0004
--- /dev/null
+++ b/etc/nova/placement-policy-generator.conf
@@ -0,0 +1,5 @@
+[DEFAULT]
+# TODO: When placement is split out of the nova repo, this can change to
+# etc/placement/policy.yaml.sample.
+output_file = etc/nova/placement-policy.yaml.sample
+namespace = placement
diff --git a/lower-constraints.txt b/lower-constraints.txt
index 99b46bfaae04..97a98fe814df 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -83,7 +83,7 @@ oslo.i18n==3.15.3
 oslo.log==3.36.0
 oslo.messaging==5.29.0
 oslo.middleware==3.31.0
-oslo.policy==1.30.0
+oslo.policy==1.35.0
 oslo.privsep==1.23.0
 oslo.reports==1.18.0
 oslo.rootwrap==5.8.0
diff --git a/nova/api/openstack/placement/auth.py b/nova/api/openstack/placement/auth.py
index 0a072b5fb6d5..ff2551e26faa 100644
--- a/nova/api/openstack/placement/auth.py
+++ b/nova/api/openstack/placement/auth.py
@@ -12,13 +12,12 @@
 
 
 from keystonemiddleware import auth_token
-from oslo_context import context
-from oslo_db.sqlalchemy import enginefacade
 from oslo_log import log as logging
 from oslo_middleware import request_id
 import webob.dec
 import webob.exc
 
+from nova.api.openstack.placement import context
 
 LOG = logging.getLogger(__name__)
 
@@ -57,11 +56,6 @@ class NoAuthMiddleware(Middleware):
         return self.application
 
 
-@enginefacade.transaction_context_provider
-class RequestContext(context.RequestContext):
-    pass
-
-
 class PlacementKeystoneContext(Middleware):
     """Make a request context from keystone headers."""
 
@@ -69,7 +63,7 @@ class PlacementKeystoneContext(Middleware):
     def __call__(self, req):
         req_id = req.environ.get(request_id.ENV_REQUEST_ID)
 
-        ctx = RequestContext.from_environ(
+        ctx = context.RequestContext.from_environ(
             req.environ, request_id=req_id)
 
         if ctx.user_id is None and req.environ['PATH_INFO'] != '/':
diff --git a/nova/api/openstack/placement/context.py b/nova/api/openstack/placement/context.py
new file mode 100644
index 000000000000..51b1340269f6
--- /dev/null
+++ b/nova/api/openstack/placement/context.py
@@ -0,0 +1,52 @@
+#    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 oslo_context import context
+from oslo_db.sqlalchemy import enginefacade
+
+from nova.api.openstack.placement import exception
+from nova.api.openstack.placement import policy
+
+
+@enginefacade.transaction_context_provider
+class RequestContext(context.RequestContext):
+
+    def can(self, action, target=None, fatal=True):
+        """Verifies that the given action is valid on the target in this
+        context.
+
+        :param action: string representing the action to be checked.
+        :param target: As much information about the object being operated on
+            as possible. The target argument should be a dict instance or an
+            instance of a class that fully supports the Mapping abstract base
+            class and deep copying. For object creation this should be a
+            dictionary representing the location of the object e.g.
+            ``{'project_id': context.project_id}``. If None, then this default
+            target will be considered::
+
+                {'project_id': self.project_id, 'user_id': self.user_id}
+        :param fatal: if False, will return False when an
+            exception.PolicyNotAuthorized occurs.
+        :raises nova.exception.PolicyNotAuthorized: if verification fails and
+            fatal is True.
+        :return: returns a non-False value (not necessarily "True") if
+            authorized and False if not authorized and fatal is False.
+        """
+        if target is None:
+            target = {'project_id': self.project_id,
+                      'user_id': self.user_id}
+        try:
+            return policy.authorize(self, action, target)
+        except exception.PolicyNotAuthorized:
+            if fatal:
+                raise
+            return False
diff --git a/nova/api/openstack/placement/exception.py b/nova/api/openstack/placement/exception.py
index ae17d5470f67..231c6e7a37ae 100644
--- a/nova/api/openstack/placement/exception.py
+++ b/nova/api/openstack/placement/exception.py
@@ -127,6 +127,10 @@ class ObjectActionError(_BaseException):
     msg_fmt = _('Object action %(action)s failed because: %(reason)s')
 
 
+class PolicyNotAuthorized(_BaseException):
+    msg_fmt = _("Policy does not allow %(action)s to be performed.")
+
+
 class ResourceClassCannotDeleteStandard(_BaseException):
     msg_fmt = _("Cannot delete standard resource class %(resource_class)s.")
 
diff --git a/nova/api/openstack/placement/handler.py b/nova/api/openstack/placement/handler.py
index 18536bb133c4..1e36a9e0ec5d 100644
--- a/nova/api/openstack/placement/handler.py
+++ b/nova/api/openstack/placement/handler.py
@@ -23,10 +23,13 @@ Routes.Mapper, including automatic handlers to respond with a
 method.
 """
 
+import re
+
 import routes
 import webob
 
 from oslo_log import log as logging
+from oslo_utils import excutils
 
 from nova.api.openstack.placement import exception
 from nova.api.openstack.placement.handlers import aggregate
@@ -38,7 +41,6 @@ from nova.api.openstack.placement.handlers import resource_provider
 from nova.api.openstack.placement.handlers import root
 from nova.api.openstack.placement.handlers import trait
 from nova.api.openstack.placement.handlers import usage
-from nova.api.openstack.placement import policy
 from nova.api.openstack.placement import util
 from nova.i18n import _
 
@@ -129,6 +131,19 @@ ROUTE_DECLARATIONS = {
     },
 }
 
+# This is a temporary list (of regexes) of the route handlers that will do
+# their own granular policy check. Once all handlers are doing their own
+# policy checks we can remove this along with the generic policy check in
+# PlacementHandler. All entries are checked against re.match() so must
+# match the start of the path.
+PER_ROUTE_POLICY = [
+    # The root is special in that it does not require auth.
+    '/$',
+    # /resource_providers
+    # /resource_providers/{uuid}
+    '/resource_providers(/[A-Za-z0-9-]+)?$'
+]
+
 
 def dispatch(environ, start_response, mapper):
     """Find a matching route for the current request.
@@ -192,17 +207,29 @@ class PlacementHandler(object):
         # NOTE(cdent): Local config currently unused.
         self._map = make_map(ROUTE_DECLARATIONS)
 
+    @staticmethod
+    def _is_granular_policy_check(path):
+        for policy in PER_ROUTE_POLICY:
+            if re.match(policy, path):
+                return True
+        return False
+
     def __call__(self, environ, start_response):
-        # All requests but '/' require admin.
-        if environ['PATH_INFO'] != '/':
+        # Any routes that do not yet have a granular policy check default
+        # to admin-only.
+        if not self._is_granular_policy_check(environ['PATH_INFO']):
             context = environ['placement.context']
-            # TODO(cdent): Using is_admin everywhere (except /) is
-            # insufficiently flexible for future use case but is
-            # convenient for initial exploration.
-            if not policy.placement_authorize(context, 'placement'):
-                raise webob.exc.HTTPForbidden(
-                    _('admin required'),
-                    json_formatter=util.json_error_formatter)
+            try:
+                if not context.can('placement', fatal=False):
+                    raise webob.exc.HTTPForbidden(
+                        _('admin required'),
+                        json_formatter=util.json_error_formatter)
+            except Exception:
+                # This is here mostly for help in debugging problems with
+                # busted test setup.
+                with excutils.save_and_reraise_exception():
+                    LOG.exception('policy check failed for path: %s',
+                                  environ['PATH_INFO'])
         # Check that an incoming request with a content-length header
         # that is an integer > 0 and not empty, also has a content-type
         # header that is not empty. If not raise a 400.
@@ -223,6 +250,10 @@ class PlacementHandler(object):
         except exception.NotFound as exc:
             raise webob.exc.HTTPNotFound(
                 exc, json_formatter=util.json_error_formatter)
+        except exception.PolicyNotAuthorized as exc:
+            raise webob.exc.HTTPForbidden(
+                exc.format_message(),
+                json_formatter=util.json_error_formatter)
         # Remaining uncaught exceptions will rise first to the Microversion
         # middleware, where any WebOb generated exceptions will be caught and
         # transformed into legit HTTP error responses (with microversion
diff --git a/nova/api/openstack/placement/handlers/resource_provider.py b/nova/api/openstack/placement/handlers/resource_provider.py
index c80e91fd82eb..86a83812e6ce 100644
--- a/nova/api/openstack/placement/handlers/resource_provider.py
+++ b/nova/api/openstack/placement/handlers/resource_provider.py
@@ -21,6 +21,7 @@ import webob
 from nova.api.openstack.placement import exception
 from nova.api.openstack.placement import microversion
 from nova.api.openstack.placement.objects import resource_provider as rp_obj
+from nova.api.openstack.placement.policies import resource_provider as policies
 from nova.api.openstack.placement.schemas import resource_provider as rp_schema
 from nova.api.openstack.placement import util
 from nova.api.openstack.placement import wsgi_wrapper
@@ -78,6 +79,7 @@ def create_resource_provider(req):
     header pointing to the newly created resource provider.
     """
     context = req.environ['placement.context']
+    context.can(policies.CREATE)
     schema = rp_schema.POST_RESOURCE_PROVIDER_SCHEMA
     want_version = req.environ[microversion.MICROVERSION_ENVIRON]
     if want_version.matches((1, 14)):
@@ -126,6 +128,7 @@ def delete_resource_provider(req):
     """
     uuid = util.wsgi_path_item(req.environ, 'uuid')
     context = req.environ['placement.context']
+    context.can(policies.DELETE)
     # The containing application will catch a not found here.
     try:
         resource_provider = rp_obj.ResourceProvider.get_by_uuid(
@@ -153,9 +156,10 @@ def get_resource_provider(req):
     """
     want_version = req.environ[microversion.MICROVERSION_ENVIRON]
     uuid = util.wsgi_path_item(req.environ, 'uuid')
-    # The containing application will catch a not found here.
     context = req.environ['placement.context']
+    context.can(policies.SHOW)
 
+    # The containing application will catch a not found here.
     resource_provider = rp_obj.ResourceProvider.get_by_uuid(
         context, uuid)
 
@@ -179,6 +183,7 @@ def list_resource_providers(req):
     a collection of resource providers.
     """
     context = req.environ['placement.context']
+    context.can(policies.LIST)
     want_version = req.environ[microversion.MICROVERSION_ENVIRON]
 
     schema = rp_schema.GET_RPS_SCHEMA_1_0
@@ -244,6 +249,7 @@ def update_resource_provider(req):
     """
     uuid = util.wsgi_path_item(req.environ, 'uuid')
     context = req.environ['placement.context']
+    context.can(policies.UPDATE)
     want_version = req.environ[microversion.MICROVERSION_ENVIRON]
 
     # The containing application will catch a not found here.
diff --git a/nova/api/openstack/placement/policies/__init__.py b/nova/api/openstack/placement/policies/__init__.py
new file mode 100644
index 000000000000..575f1d8642e8
--- /dev/null
+++ b/nova/api/openstack/placement/policies/__init__.py
@@ -0,0 +1,23 @@
+#    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 itertools
+
+from nova.api.openstack.placement.policies import base
+from nova.api.openstack.placement.policies import resource_provider
+
+
+def list_rules():
+    return itertools.chain(
+        base.list_rules(),
+        resource_provider.list_rules(),
+    )
diff --git a/nova/api/openstack/placement/policies/base.py b/nova/api/openstack/placement/policies/base.py
new file mode 100644
index 000000000000..f196994d8001
--- /dev/null
+++ b/nova/api/openstack/placement/policies/base.py
@@ -0,0 +1,41 @@
+#    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 oslo_policy import policy
+
+RULE_ADMIN_API = 'rule:admin_api'
+
+rules = [
+    # "placement" is the default rule (action) used for all routes that do
+    # not yet have granular policy rules. It is used in
+    # PlacementHandler.__call__ and can be dropped once all routes have
+    # granular policy handling.
+    policy.RuleDefault(
+        "placement",
+        "role:admin",
+        description="This rule is used for all routes that do not yet "
+                    "have granular policy rules. It will be replaced "
+                    "with rule:admin_api.",
+        deprecated_for_removal=True,
+        deprecated_reason="This was a catch-all rule hard-coded into "
+                          "the placement service and has been superseded by "
+                          "granular policy rules per operation.",
+        deprecated_since="18.0.0"),
+    policy.RuleDefault(
+        "admin_api",
+        "role:admin",
+        description="Default rule for most placement APIs."),
+]
+
+
+def list_rules():
+    return rules
diff --git a/nova/api/openstack/placement/policies/resource_provider.py b/nova/api/openstack/placement/policies/resource_provider.py
new file mode 100644
index 000000000000..027985c20442
--- /dev/null
+++ b/nova/api/openstack/placement/policies/resource_provider.py
@@ -0,0 +1,81 @@
+#    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 oslo_policy import policy
+
+from nova.api.openstack.placement.policies import base
+
+
+PREFIX = 'placement:resource_providers:%s'
+LIST = PREFIX % 'list'
+CREATE = PREFIX % 'create'
+SHOW = PREFIX % 'show'
+UPDATE = PREFIX % 'update'
+DELETE = PREFIX % 'delete'
+
+rules = [
+    policy.DocumentedRuleDefault(
+        LIST,
+        base.RULE_ADMIN_API,
+        "List resource providers.",
+        [
+            {
+                'method': 'GET',
+                'path': '/resource_providers'
+            }
+        ]),
+    policy.DocumentedRuleDefault(
+        CREATE,
+        base.RULE_ADMIN_API,
+        "Create resource provider.",
+        [
+            {
+                'method': 'POST',
+                'path': '/resource_providers'
+            }
+        ]),
+    policy.DocumentedRuleDefault(
+        SHOW,
+        base.RULE_ADMIN_API,
+        "Show resource provider.",
+        [
+            {
+                'method': 'GET',
+                'path': '/resource_providers/{uuid}'
+            }
+        ]),
+    policy.DocumentedRuleDefault(
+        UPDATE,
+        base.RULE_ADMIN_API,
+        "Update resource provider.",
+        [
+            {
+                'method': 'PUT',
+                'path': '/resource_providers/{uuid}'
+            }
+        ]),
+    policy.DocumentedRuleDefault(
+        DELETE,
+        base.RULE_ADMIN_API,
+        "Delete resource provider.",
+        [
+            {
+                'method': 'DELETE',
+                'path': '/resource_providers/{uuid}'
+            }
+        ]),
+]
+
+
+def list_rules():
+    return rules
diff --git a/nova/api/openstack/placement/policy.py b/nova/api/openstack/placement/policy.py
index fd856635b68b..a280b484c4ce 100644
--- a/nova/api/openstack/placement/policy.py
+++ b/nova/api/openstack/placement/policy.py
@@ -14,7 +14,10 @@
 from oslo_config import cfg
 from oslo_log import log as logging
 from oslo_policy import policy
-from oslo_serialization import jsonutils
+from oslo_utils import excutils
+
+from nova.api.openstack.placement import exception
+from nova.api.openstack.placement import policies
 
 
 CONF = cfg.CONF
@@ -22,54 +25,68 @@ LOG = logging.getLogger(__name__)
 _ENFORCER_PLACEMENT = None
 
 
-def placement_init():
-    """Init an Enforcer class for placement policy.
+def reset():
+    """Used to reset the global _ENFORCER_PLACEMENT between test runs."""
+    global _ENFORCER_PLACEMENT
+    if _ENFORCER_PLACEMENT:
+        _ENFORCER_PLACEMENT.clear()
+        _ENFORCER_PLACEMENT = None
 
-    This method uses a different list of policies than other parts of Nova.
-    This is done to facilitate a split out of the placement service later.
-    """
+
+def init():
+    """Init an Enforcer class. Sets the _ENFORCER_PLACEMENT global."""
     global _ENFORCER_PLACEMENT
     if not _ENFORCER_PLACEMENT:
-        # TODO(cdent): Using is_admin everywhere (except /) is
-        # insufficiently flexible for future use case but is
-        # convenient for initial exploration. We will need to
-        # determine how to manage authorization/policy and
-        # implement that, probably per handler.
-        rules = policy.Rules.load(jsonutils.dumps({'placement': 'role:admin'}))
-        # Enforcer is initialized so that the above rule is loaded in and no
-        # policy file is read.
-        # TODO(alaski): Register a default rule rather than loading it in like
-        # this. That requires that a policy file is specified to be read. When
-        # this is split out such that a placement policy file makes sense then
-        # change to rule registration.
-        _ENFORCER_PLACEMENT = policy.Enforcer(CONF, rules=rules,
-                                              use_conf=False)
+        # NOTE(mriedem): We have to explicitly pass in the
+        # [placement]/policy_file path because otherwise oslo_policy defaults
+        # to read the policy file from config option [oslo_policy]/policy_file
+        # which is used by nova. In other words, to have separate policy files
+        # for placement and nova, we have to use separate policy_file options.
+        _ENFORCER_PLACEMENT = policy.Enforcer(
+            CONF, policy_file=CONF.placement.policy_file)
+        _ENFORCER_PLACEMENT.register_defaults(policies.list_rules())
+        _ENFORCER_PLACEMENT.load_rules()
 
 
-def placement_authorize(context, action, target=None):
+def get_enforcer():
+    # This method is used by oslopolicy CLI scripts in order to generate policy
+    # files from overrides on disk and defaults in code. We can just pass an
+    # empty list and let oslo do the config lifting for us.
+    cfg.CONF([], project='nova')
+    init()
+    return _ENFORCER_PLACEMENT
+
+
+def authorize(context, action, target, do_raise=True):
     """Verifies that the action is valid on the target in this context.
 
-       :param context: RequestContext object
-       :param action: string representing the action to be checked
-       :param target: dictionary representing the object of the action
-           for object creation this should be a dictionary representing the
-           location of the object e.g. ``{'project_id': context.project_id}``
-
-       :return: returns a non-False value (not necessarily "True") if
-           authorized, and the exact value False if not authorized.
+    :param context: instance of
+        nova.api.openstack.placement.context.RequestContext
+    :param action: string representing the action to be checked
+        this should be colon separated for clarity, i.e.
+        ``placement:resource_providers:list``
+    :param target: dictionary representing the object of the action;
+        for object creation this should be a dictionary representing the
+        owner of the object e.g. ``{'project_id': context.project_id}``.
+    :param do_raise: if True (the default), raises PolicyNotAuthorized;
+        if False, returns False
+    :raises nova.api.openstack.placement.exception.PolicyNotAuthorized: if
+        verification fails and do_raise is True.
+    :returns: non-False value (not necessarily "True") if authorized, and the
+        exact value False if not authorized and do_raise is False.
     """
-    placement_init()
-    if target is None:
-        target = {'project_id': context.project_id,
-                  'user_id': context.user_id}
+    init()
     credentials = context.to_policy_values()
-    # TODO(alaski): Change this to use authorize() when rules are registered.
-    # noqa the following line because a hacking check disallows using enforce.
-    result = _ENFORCER_PLACEMENT.enforce(action, target, credentials,
-                                         do_raise=False, exc=None,
-                                         action=action)
-    if result is False:
-        LOG.debug('Policy check for %(action)s failed with credentials '
-                  '%(credentials)s',
-                  {'action': action, 'credentials': credentials})
-    return result
+    try:
+        # NOTE(mriedem): The "action" kwarg is for the PolicyNotAuthorized exc.
+        return _ENFORCER_PLACEMENT.authorize(
+            action, target, credentials, do_raise=do_raise,
+            exc=exception.PolicyNotAuthorized, action=action)
+    except policy.PolicyNotRegistered:
+        with excutils.save_and_reraise_exception():
+            LOG.exception('Policy not registered')
+    except Exception:
+        with excutils.save_and_reraise_exception():
+            LOG.debug('Policy check for %(action)s failed with credentials '
+                      '%(credentials)s',
+                      {'action': action, 'credentials': credentials})
diff --git a/nova/conf/placement.py b/nova/conf/placement.py
index 9dd545915585..fd68dc13d193 100644
--- a/nova/conf/placement.py
+++ b/nova/conf/placement.py
@@ -35,6 +35,15 @@ being equal, two requests for allocation candidates will return the same
 results in the same order; but no guarantees are made as to how that order
 is determined.
 """),
+    # TODO(mriedem): When placement is split out of nova, this should be
+    # deprecated since then [oslo_policy]/policy_file can be used.
+    cfg.StrOpt(
+        'policy_file',
+        # This default matches what is in
+        # etc/nova/placement-policy-generator.conf
+        default='placement-policy.yaml',
+        help='The file that defines placement policies. This can be an '
+             'absolute path or relative to the configuration file.'),
 ]
 
 
diff --git a/nova/hacking/checks.py b/nova/hacking/checks.py
index eea0a775e636..3780f897614c 100644
--- a/nova/hacking/checks.py
+++ b/nova/hacking/checks.py
@@ -621,13 +621,16 @@ def check_config_option_in_central_place(logical_line, filename):
 
 
 def check_policy_registration_in_central_place(logical_line, filename):
-    msg = ('N350: Policy registration should be in the central location '
-           '"/nova/policies/*".')
+    msg = ('N350: Policy registration should be in the central location(s) '
+           '"/nova/policies/*" or "nova/api/openstack/placement/policies/*".')
     # This is where registration should happen
-    if "nova/policies/" in filename:
+    if ("nova/policies/" in filename or
+            "nova/api/openstack/placement/policies/" in filename):
         return
     # A couple of policy tests register rules
-    if "nova/tests/unit/test_policy.py" in filename:
+    if ("nova/tests/unit/test_policy.py" in filename or
+            "nova/tests/unit/api/openstack/placement/test_policy.py" in
+            filename):
         return
 
     if rule_default_re.match(logical_line):
diff --git a/nova/test.py b/nova/test.py
index 26dcbfdc583f..d43782b7a91b 100644
--- a/nova/test.py
+++ b/nova/test.py
@@ -322,6 +322,8 @@ class TestCase(testtools.TestCase):
         self.addCleanup(self._clear_attrs)
         self.useFixture(fixtures.EnvironmentVariable('http_proxy'))
         self.policy = self.useFixture(policy_fixture.PolicyFixture())
+        self.placement_policy = self.useFixture(
+            policy_fixture.PlacementPolicyFixture())
 
         self.useFixture(nova_fixtures.PoisonFunctions())
 
diff --git a/nova/tests/functional/api/openstack/placement/fixtures.py b/nova/tests/functional/api/openstack/placement/fixtures.py
index 31c898d1149b..c84f8f6b86ec 100644
--- a/nova/tests/functional/api/openstack/placement/fixtures.py
+++ b/nova/tests/functional/api/openstack/placement/fixtures.py
@@ -19,10 +19,12 @@ from oslo_utils import uuidutils
 from nova.api.openstack.placement import deploy
 from nova.api.openstack.placement import exception
 from nova.api.openstack.placement.objects import resource_provider as rp_obj
+from nova.api.openstack.placement import policies
 from nova import conf
 from nova import config
 from nova import context
 from nova.tests import fixtures
+from nova.tests.unit import policy_fixture
 from nova.tests import uuidsentinel as uuids
 
 
@@ -514,3 +516,28 @@ class GranularFixture(APIFixture):
         _add_inventory(shr_net, 'SRIOV_NET_VF', 16)
         _add_inventory(shr_net, 'CUSTOM_NET_MBPS', 40000)
         _set_traits(shr_net, 'MISC_SHARES_VIA_AGGREGATE')
+
+
+class OpenPolicyFixture(APIFixture):
+    """An APIFixture that changes all policy rules to allow non-admins."""
+
+    def start_fixture(self):
+        super(OpenPolicyFixture, self).start_fixture()
+        self.placement_policy_fixture = policy_fixture.PlacementPolicyFixture()
+        self.placement_policy_fixture.setUp()
+        # Get all of the registered rules and set them to '@' to allow any
+        # user to have access. The nova policy "admin_or_owner" concept does
+        # not really apply to most of placement resources since they do not
+        # have a user_id/project_id attribute.
+        rules = {}
+        for rule in policies.list_rules():
+            name = rule.name
+            # Ignore "base" rules for role:admin.
+            if name in ['placement', 'admin_api']:
+                continue
+            rules[name] = '@'
+        self.placement_policy_fixture.set_rules(rules)
+
+    def stop_fixture(self):
+        super(OpenPolicyFixture, self).stop_fixture()
+        self.placement_policy_fixture.cleanUp()
diff --git a/nova/tests/functional/api/openstack/placement/gabbits/resource-provider-policy.yaml b/nova/tests/functional/api/openstack/placement/gabbits/resource-provider-policy.yaml
new file mode 100644
index 000000000000..ef663f1b481c
--- /dev/null
+++ b/nova/tests/functional/api/openstack/placement/gabbits/resource-provider-policy.yaml
@@ -0,0 +1,48 @@
+# This tests the individual CRUD operations on /resource_providers
+# using a non-admin user with an open policy configuration. The
+# response validation is intentionally minimal.
+fixtures:
+    - OpenPolicyFixture
+
+defaults:
+    request_headers:
+        x-auth-token: user
+        accept: application/json
+        content-type: application/json
+        openstack-api-version: placement latest
+
+tests:
+
+- name: list resource providers
+  GET: /resource_providers
+  response_json_paths:
+      $.resource_providers: []
+
+- name: create resource provider
+  POST: /resource_providers
+  request_headers:
+      content-type: application/json
+  data:
+      name: $ENVIRON['RP_NAME']
+      uuid: $ENVIRON['RP_UUID']
+  status: 200
+  response_json_paths:
+      $.uuid: $ENVIRON['RP_UUID']
+
+- name: show resource provider
+  GET: /resource_providers/$ENVIRON['RP_UUID']
+  response_json_paths:
+      $.uuid: $ENVIRON['RP_UUID']
+
+- name: update resource provider
+  PUT: /resource_providers/$ENVIRON['RP_UUID']
+  data:
+      name: new name
+  status: 200
+  response_json_paths:
+      $.name: new name
+      $.uuid: $ENVIRON['RP_UUID']
+
+- name: delete resource provider
+  DELETE: /resource_providers/$ENVIRON['RP_UUID']
+  status: 204
diff --git a/nova/tests/functional/api/openstack/placement/gabbits/resource-provider.yaml b/nova/tests/functional/api/openstack/placement/gabbits/resource-provider.yaml
index b39ce632014c..e86ba80059fd 100644
--- a/nova/tests/functional/api/openstack/placement/gabbits/resource-provider.yaml
+++ b/nova/tests/functional/api/openstack/placement/gabbits/resource-provider.yaml
@@ -31,14 +31,13 @@ tests:
   response_json_paths:
       $.errors[0].title: Forbidden
 
-- name: non admin forbidden non json
-  GET: /resource_providers
+- name: route not found non json
+  GET: /moo
   request_headers:
-      x-auth-token: user
       accept: text/plain
-  status: 403
+  status: 404
   response_strings:
-      - admin required
+      - The resource could not be found
 
 - name: post new resource provider - old microversion
   POST: /resource_providers
diff --git a/nova/tests/unit/api/openstack/placement/test_context.py b/nova/tests/unit/api/openstack/placement/test_context.py
new file mode 100644
index 000000000000..18101615919f
--- /dev/null
+++ b/nova/tests/unit/api/openstack/placement/test_context.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 mock
+import testtools
+
+from nova.api.openstack.placement import context
+from nova.api.openstack.placement import exception
+
+
+class TestPlacementRequestContext(testtools.TestCase):
+    """Test cases for PlacementRequestContext."""
+
+    def setUp(self):
+        super(TestPlacementRequestContext, self).setUp()
+        self.ctxt = context.RequestContext(user_id='fake', project_id='fake')
+        self.default_target = {'user_id': self.ctxt.user_id,
+                               'project_id': self.ctxt.project_id}
+
+    @mock.patch('nova.api.openstack.placement.policy.authorize',
+                return_value=True)
+    def test_can_target_none_fatal_true_accept(self, mock_authorize):
+        self.assertTrue(self.ctxt.can('placement:resource_providers:list'))
+        mock_authorize.assert_called_once_with(
+            self.ctxt, 'placement:resource_providers:list',
+            self.default_target)
+
+    @mock.patch('nova.api.openstack.placement.policy.authorize',
+                side_effect=exception.PolicyNotAuthorized(
+                    action='placement:resource_providers:list'))
+    def test_can_target_none_fatal_true_reject(self, mock_authorize):
+        self.assertRaises(exception.PolicyNotAuthorized,
+                          self.ctxt.can, 'placement:resource_providers:list')
+        mock_authorize.assert_called_once_with(
+            self.ctxt, 'placement:resource_providers:list',
+            self.default_target)
+
+    @mock.patch('nova.api.openstack.placement.policy.authorize',
+                side_effect=exception.PolicyNotAuthorized(
+                    action='placement:resource_providers:list'))
+    def test_can_target_none_fatal_false_reject(self, mock_authorize):
+        self.assertFalse(self.ctxt.can('placement:resource_providers:list',
+                                       fatal=False))
+        mock_authorize.assert_called_once_with(
+            self.ctxt, 'placement:resource_providers:list',
+            self.default_target)
+
+    @mock.patch('nova.api.openstack.placement.policy.authorize',
+                return_value=True)
+    def test_can_target_none_fatal_true_accept_custom_target(
+            self, mock_authorize):
+        class MyObj(object):
+            user_id = project_id = 'fake2'
+
+        target = MyObj()
+        self.assertTrue(self.ctxt.can('placement:resource_providers:list',
+                                      target=target))
+        mock_authorize.assert_called_once_with(
+            self.ctxt, 'placement:resource_providers:list', target)
diff --git a/nova/tests/unit/api/openstack/placement/test_policy.py b/nova/tests/unit/api/openstack/placement/test_policy.py
new file mode 100644
index 000000000000..ad0bdf637a6a
--- /dev/null
+++ b/nova/tests/unit/api/openstack/placement/test_policy.py
@@ -0,0 +1,80 @@
+#    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 os
+
+from oslo_policy import policy as oslo_policy
+import testtools
+
+from nova.api.openstack.placement import context
+from nova.api.openstack.placement import exception
+from nova.api.openstack.placement import policy
+from nova.tests.unit import conf_fixture
+from nova.tests.unit import policy_fixture
+from nova import utils
+
+
+class PlacementPolicyTestCase(testtools.TestCase):
+    """Tests interactions with placement policy.
+
+    These tests do not rely on the base nova.test.TestCase to avoid
+    interference from the PlacementPolicyFixture which is not used in all
+    test cases.
+    """
+    def setUp(self):
+        super(PlacementPolicyTestCase, self).setUp()
+        self.conf = self.useFixture(conf_fixture.ConfFixture()).conf
+        self.ctxt = context.RequestContext(user_id='fake', project_id='fake')
+        self.target = {'user_id': 'fake', 'project_id': 'fake'}
+
+    def test_modified_policy_reloads(self):
+        """Creates a temporary placement-policy.yaml file and tests
+        authorizations against a fake rule between updates to the physical
+        policy file.
+        """
+        with utils.tempdir() as tmpdir:
+            tmpfilename = os.path.join(tmpdir, 'placement-policy.yaml')
+
+            self.conf.set_default(
+                'policy_file', tmpfilename, group='placement')
+
+            action = 'placement:test'
+            # Expect PolicyNotRegistered since defaults are not yet loaded.
+            self.assertRaises(oslo_policy.PolicyNotRegistered,
+                              policy.authorize, self.ctxt, action, self.target)
+
+            # Load the default action and rule (defaults to "any").
+            enforcer = policy.get_enforcer()
+            rule = oslo_policy.RuleDefault(action, '')
+            enforcer.register_default(rule)
+
+            # Now auth should work because the action is registered and anyone
+            # can perform the action.
+            policy.authorize(self.ctxt, action, self.target)
+
+            # Now update the policy file and reload it to disable the action
+            # from all users.
+            with open(tmpfilename, "w") as policyfile:
+                policyfile.write('"%s": "!"' % action)
+            enforcer.load_rules(force_reload=True)
+            self.assertRaises(exception.PolicyNotAuthorized, policy.authorize,
+                              self.ctxt, action, self.target)
+
+    def test_authorize_do_raise_false(self):
+        """Tests that authorize does not raise an exception when the check
+        fails.
+        """
+        fixture = self.useFixture(policy_fixture.PlacementPolicyFixture())
+        fixture.set_rules({'placement': '!'})
+        self.assertFalse(
+            policy.authorize(
+                self.ctxt, 'placement', self.target, do_raise=False))
diff --git a/nova/tests/unit/policy_fixture.py b/nova/tests/unit/policy_fixture.py
index a076afa93d02..651f096bcba4 100644
--- a/nova/tests/unit/policy_fixture.py
+++ b/nova/tests/unit/policy_fixture.py
@@ -18,6 +18,7 @@ import fixtures
 from oslo_policy import policy as oslo_policy
 from oslo_serialization import jsonutils
 
+from nova.api.openstack.placement import policy as placement_policy
 import nova.conf
 from nova.conf import paths
 from nova import policies
@@ -126,3 +127,32 @@ class RoleBasedPolicyFixture(RealPolicyFixture):
         self.policy_file = os.path.join(self.policy_dir.path, 'policy.json')
         with open(self.policy_file, 'w') as f:
             jsonutils.dump(policy, f)
+
+
+class PlacementPolicyFixture(fixtures.Fixture):
+    """Load the default placement policy for tests.
+
+    This fixture requires nova.tests.unit.conf_fixture.ConfFixture.
+    """
+    def setUp(self):
+        super(PlacementPolicyFixture, self).setUp()
+        policy_file = paths.state_path_def('etc/nova/placement-policy.yaml')
+        CONF.set_override('policy_file', policy_file, group='placement')
+        placement_policy.reset()
+        placement_policy.init()
+        self.addCleanup(placement_policy.reset)
+
+    @staticmethod
+    def set_rules(rules, overwrite=True):
+        """Set placement policy rules.
+
+        .. note:: The rules must first be registered via the
+                  Enforcer.register_defaults method.
+
+        :param rules: dict of action=rule mappings to set
+        :param overwrite: Whether to overwrite current rules or update them
+                          with the new rules.
+        """
+        enforcer = placement_policy.get_enforcer()
+        enforcer.set_rules(oslo_policy.Rules.from_dict(rules),
+                           overwrite=overwrite)
diff --git a/nova/tests/unit/test_fixtures.py b/nova/tests/unit/test_fixtures.py
index cb5a4ceb1d91..4e8b3e6f71f4 100644
--- a/nova/tests/unit/test_fixtures.py
+++ b/nova/tests/unit/test_fixtures.py
@@ -34,6 +34,7 @@ from nova.objects import base as obj_base
 from nova.objects import service as service_obj
 from nova.tests import fixtures
 from nova.tests.unit import conf_fixture
+from nova.tests.unit import policy_fixture
 from nova import utils
 
 CONF = cfg.CONF
@@ -471,6 +472,13 @@ class TestSingleCellSimpleFixture(testtools.TestCase):
 
 
 class TestPlacementFixture(testtools.TestCase):
+    def setUp(self):
+        super(TestPlacementFixture, self).setUp()
+        # We need ConfFixture since PlacementPolicyFixture reads from config.
+        self.useFixture(conf_fixture.ConfFixture())
+        # We need PlacementPolicyFixture because placement-api checks policy.
+        self.useFixture(policy_fixture.PlacementPolicyFixture())
+
     def test_responds_to_version(self):
         """Ensure the Placement server responds to calls sensibly."""
         placement_fixture = self.useFixture(fixtures.PlacementFixture())
diff --git a/releasenotes/notes/bp-granular-placement-policy-65722fc6d7cb1359.yaml b/releasenotes/notes/bp-granular-placement-policy-65722fc6d7cb1359.yaml
new file mode 100644
index 000000000000..90fc54a9e575
--- /dev/null
+++ b/releasenotes/notes/bp-granular-placement-policy-65722fc6d7cb1359.yaml
@@ -0,0 +1,31 @@
+---
+features:
+  - |
+    It is now possible to configure granular policy rules for placement
+    REST API operations.
+
+    By default, all operations continue to use the ``role:admin`` check string
+    so there is no upgrade impact.
+
+    A new configuration option is introduced, ``[placement]/policy_file``,
+    which is used to configure the location of the placement policy file.
+    By default, the ``placement-policy.yaml`` file may live alongside the
+    nova policy file, e.g.:
+
+    * /etc/nova/policy.yaml
+    * /etc/nova/placement-policy.yaml
+
+    However, if desired, ``[placement]/policy_file`` makes it possible to
+    package and deploy the placement policy file separately to make the future
+    split of placement and nova packages easier, e.g.:
+
+    * /etc/placement/policy.yaml
+
+    All placement policy rules are defined in code so by default no extra
+    configuration is required and the default rules will be used on start of
+    the placement service.
+
+    For more information about placement policy including a sample file, see
+    the configuration reference documentation:
+
+    https://docs.openstack.org/nova/latest/configuration/index.html#placement-policy
diff --git a/requirements.txt b/requirements.txt
index 43b82f6cfbbe..5dc08840c476 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -44,7 +44,7 @@ oslo.utils>=3.33.0 # Apache-2.0
 oslo.db>=4.27.0 # Apache-2.0
 oslo.rootwrap>=5.8.0 # Apache-2.0
 oslo.messaging>=5.29.0 # Apache-2.0
-oslo.policy>=1.30.0 # Apache-2.0
+oslo.policy>=1.35.0 # Apache-2.0
 oslo.privsep>=1.23.0 # Apache-2.0
 oslo.i18n>=3.15.3 # Apache-2.0
 oslo.service!=1.28.1,>=1.24.0 # Apache-2.0
diff --git a/setup.cfg b/setup.cfg
index 12f1286dd7ce..d2e073153ca6 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -40,6 +40,7 @@ oslo.config.opts.defaults =
 
 oslo.policy.enforcer =
     nova = nova.policy:get_enforcer
+    placement = nova.api.openstack.placement.policy:get_enforcer
 
 oslo.policy.policies =
     # The sample policies will be ordered by entry point and then by list
@@ -47,6 +48,7 @@ oslo.policy.policies =
     # list_rules method into a separate entry point rather than using the
     # aggregate method.
     nova = nova.policies:list_rules
+    placement = nova.api.openstack.placement.policies:list_rules
 
 nova.compute.monitors.cpu =
     virt_driver = nova.compute.monitors.cpu.virt_driver:Monitor
diff --git a/tox.ini b/tox.ini
index 8a3d2d8af301..c10d07f9e0c9 100644
--- a/tox.ini
+++ b/tox.ini
@@ -116,6 +116,9 @@ commands = oslo-config-generator --config-file=etc/nova/nova-config-generator.co
 [testenv:genpolicy]
 commands = oslopolicy-sample-generator --config-file=etc/nova/nova-policy-generator.conf
 
+[testenv:genplacementpolicy]
+commands = oslopolicy-sample-generator --config-file=etc/nova/placement-policy-generator.conf
+
 [testenv:cover]
 # Also do not run test_coverage_ext tests while gathering coverage as those
 # tests conflict with coverage.