diff --git a/rhodecode/model/repos_group.py b/rhodecode/model/repos_group.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/model/repos_group.py
@@ -0,0 +1,173 @@
+# -*- coding: utf-8 -*-
+"""
+    rhodecode.model.user_group
+    ~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+    users groups model for RhodeCode
+
+    :created_on: Jan 25, 2011
+    :author: marcink
+    :copyright: (C) 2009-2011 Marcin Kuzminski <marcin@python-works.com>
+    :license: GPLv3, see COPYING for more details.
+"""
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+import os
+import logging
+import traceback
+import shutil
+
+from pylons.i18n.translation import _
+
+from vcs.utils.lazy import LazyProperty
+
+from rhodecode.model import BaseModel
+from rhodecode.model.caching_query import FromCache
+from rhodecode.model.db import Group, RhodeCodeUi
+
+log = logging.getLogger(__name__)
+
+
+class ReposGroupModel(BaseModel):
+
+    @LazyProperty
+    def repos_path(self):
+        """
+        Get's the repositories root path from database
+        """
+
+        q = RhodeCodeUi.get_by_key('/').one()
+        return q.ui_value
+
+    def __create_group(self, group_name, parent_id):
+        """
+        makes repositories group on filesystem
+
+        :param repo_name:
+        :param parent_id:
+        """
+
+        if parent_id:
+            paths = Group.get(parent_id).full_path.split(Group.url_sep())
+            parent_path = os.sep.join(paths)
+        else:
+            parent_path = ''
+
+        create_path = os.path.join(self.repos_path, parent_path, group_name)
+        log.debug('creating new group in %s', create_path)
+
+        if os.path.isdir(create_path):
+            raise Exception('That directory already exists !')
+
+
+        os.makedirs(create_path)
+
+
+    def __rename_group(self, old, old_parent_id, new, new_parent_id):
+        """
+        Renames a group on filesystem
+        
+        :param group_name:
+        """
+        log.debug('renaming repos group from %s to %s', old, new)
+
+        if new_parent_id:
+            paths = Group.get(new_parent_id).full_path.split(Group.url_sep())
+            new_parent_path = os.sep.join(paths)
+        else:
+            new_parent_path = ''
+
+        if old_parent_id:
+            paths = Group.get(old_parent_id).full_path.split(Group.url_sep())
+            old_parent_path = os.sep.join(paths)
+        else:
+            old_parent_path = ''
+
+        old_path = os.path.join(self.repos_path, old_parent_path, old)
+        new_path = os.path.join(self.repos_path, new_parent_path, new)
+
+        log.debug('renaming repos paths from %s to %s', old_path, new_path)
+
+        if os.path.isdir(new_path):
+            raise Exception('Was trying to rename to already '
+                            'existing dir %s' % new_path)
+        shutil.move(old_path, new_path)
+
+    def __delete_group(self, group):
+        """
+        Deletes a group from a filesystem
+        
+        :param group: instance of group from database
+        """
+        paths = group.full_path.split(Group.url_sep())
+        paths = os.sep.join(paths)
+
+        rm_path = os.path.join(self.repos_path, paths)
+        os.rmdir(rm_path)
+
+    def create(self, form_data):
+        try:
+            new_repos_group = Group()
+            new_repos_group.group_name = form_data['group_name']
+            new_repos_group.group_description = \
+                form_data['group_description']
+            new_repos_group.group_parent_id = form_data['group_parent_id']
+
+            self.sa.add(new_repos_group)
+
+            self.__create_group(form_data['group_name'],
+                                form_data['group_parent_id'])
+
+            self.sa.commit()
+        except:
+            log.error(traceback.format_exc())
+            self.sa.rollback()
+            raise
+
+    def update(self, repos_group_id, form_data):
+
+        try:
+            repos_group = Group.get(repos_group_id)
+            old_name = repos_group.group_name
+            old_parent_id = repos_group.group_parent_id
+
+            repos_group.group_name = form_data['group_name']
+            repos_group.group_description = \
+                form_data['group_description']
+            repos_group.group_parent_id = form_data['group_parent_id']
+
+            self.sa.add(repos_group)
+
+            if old_name != form_data['group_name'] or (old_parent_id !=
+                                                form_data['group_parent_id']):
+                self.__rename_group(old=old_name, old_parent_id=old_parent_id,
+                                    new=form_data['group_name'],
+                                    new_parent_id=form_data['group_parent_id'])
+
+            self.sa.commit()
+        except:
+            log.error(traceback.format_exc())
+            self.sa.rollback()
+            raise
+
+    def delete(self, users_group_id):
+        try:
+            users_group = Group.get(users_group_id)
+            self.sa.delete(users_group)
+            self.__delete_group(users_group)
+            self.sa.commit()
+        except:
+            log.error(traceback.format_exc())
+            self.sa.rollback()
+            raise