diff --git a/group_vars/ironic-compute_hosts.yml b/group_vars/ironic-compute_hosts.yml
new file mode 100644
index 0000000000..8a54bf63dd
--- /dev/null
+++ b/group_vars/ironic-compute_hosts.yml
@@ -0,0 +1,16 @@
+---
+# Copyright 2017, Rackspace US, Inc.
+#
+# 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.
+
+nova_virt_type: ironic
diff --git a/group_vars/ironic_compute.yml b/group_vars/ironic_compute.yml
deleted file mode 100644
index 4207d5c0c2..0000000000
--- a/group_vars/ironic_compute.yml
+++ /dev/null
@@ -1,16 +0,0 @@
----
-# Copyright 2016, Rackspace US, Inc.
-#
-# 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.
-
-nova_virt_type: ironic
diff --git a/group_vars/ironic_compute.yml b/group_vars/ironic_compute.yml
new file mode 120000
index 0000000000..6d8aae380e
--- /dev/null
+++ b/group_vars/ironic_compute.yml
@@ -0,0 +1 @@
+ironic-compute_hosts.yml
\ No newline at end of file
diff --git a/group_vars/kvm-compute_hosts.yml b/group_vars/kvm-compute_hosts.yml
new file mode 100644
index 0000000000..62cace38c0
--- /dev/null
+++ b/group_vars/kvm-compute_hosts.yml
@@ -0,0 +1,16 @@
+---
+# Copyright 2017, Logan Vig <logan2211@gmail.com>
+#
+# 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.
+
+nova_virt_type: kvm
diff --git a/group_vars/lxd-compute_hosts.yml b/group_vars/lxd-compute_hosts.yml
new file mode 100644
index 0000000000..ccd1d661f3
--- /dev/null
+++ b/group_vars/lxd-compute_hosts.yml
@@ -0,0 +1,16 @@
+---
+# Copyright 2017, Logan Vig <logan2211@gmail.com>
+#
+# 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.
+
+nova_virt_type: lxd
diff --git a/group_vars/powervm-compute_hosts.yml b/group_vars/powervm-compute_hosts.yml
new file mode 100644
index 0000000000..96f6a8e51b
--- /dev/null
+++ b/group_vars/powervm-compute_hosts.yml
@@ -0,0 +1,16 @@
+---
+# Copyright 2017, Logan Vig <logan2211@gmail.com>
+#
+# 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.
+
+nova_virt_type: powervm
diff --git a/group_vars/qemu-compute_hosts.yml b/group_vars/qemu-compute_hosts.yml
new file mode 100644
index 0000000000..2ea3bef720
--- /dev/null
+++ b/group_vars/qemu-compute_hosts.yml
@@ -0,0 +1,16 @@
+---
+# Copyright 2017, Rackspace US, Inc.
+#
+# 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.
+
+nova_virt_type: qemu
diff --git a/playbooks/inventory/env.d/nova.yml b/playbooks/inventory/env.d/nova.yml
index 5d2af12adc..934315934f 100644
--- a/playbooks/inventory/env.d/nova.yml
+++ b/playbooks/inventory/env.d/nova.yml
@@ -59,6 +59,10 @@ container_skel:
   nova_compute_container:
     belongs_to:
       - compute_containers
+      - kvm-compute_containers
+      - lxd-compute_containers
+      - qemu-compute_containers
+      - powervm-compute_containers
     contains:
       - neutron_linuxbridge_agent
       - neutron_openvswitch_agent
@@ -99,3 +103,27 @@ physical_skel:
   compute_hosts:
     belongs_to:
       - hosts
+  lxd-compute_containers:
+    belongs_to:
+      - all_containers
+  lxd-compute_hosts:
+    belongs_to:
+      - hosts
+  kvm-compute_containers:
+    belongs_to:
+      - all_containers
+  kvm-compute_hosts:
+    belongs_to:
+      - hosts
+  qemu-compute_containers:
+    belongs_to:
+      - all_containers
+  qemu-compute_hosts:
+    belongs_to:
+      - hosts
+  powervm-compute_containers:
+    belongs_to:
+      - all_containers
+  powervm-compute_hosts:
+    belongs_to:
+      - hosts
diff --git a/releasenotes/notes/hypervisor-groups-9c9fb1d44b602af0.yaml b/releasenotes/notes/hypervisor-groups-9c9fb1d44b602af0.yaml
new file mode 100644
index 0000000000..f1fe2aea0b
--- /dev/null
+++ b/releasenotes/notes/hypervisor-groups-9c9fb1d44b602af0.yaml
@@ -0,0 +1,9 @@
+---
+features:
+  - New hypervisor groups have been added allowing deployers to
+    better define their compute workloads. While the generic
+    "compute_hosts" group will still work explicit definitions
+    for compute hosts can now be defined using the
+    `ironic-compute_hosts`, `kvm-compute_hosts`, `lxd-compute_hosts`,
+    `qemu-compute_hosts`, and `powervm-compute_hosts` groups
+    accordingly
diff --git a/tests/test_inventory.py b/tests/test_inventory.py
index 7e37953fb7..218bf245fa 100644
--- a/tests/test_inventory.py
+++ b/tests/test_inventory.py
@@ -246,10 +246,14 @@ class TestAnsibleInventoryFormatConstraints(unittest.TestCase):
         'keystone',
         'keystone_all',
         'keystone_container',
+        'kvm-compute_containers',
+        'kvm-compute_hosts',
         'log_all',
         'log_containers',
         'log_hosts',
         'lxc_hosts',
+        'lxd-compute_containers',
+        'lxd-compute_hosts',
         'magnum',
         'magnum-infra_all',
         'magnum-infra_containers',
@@ -265,6 +269,10 @@ class TestAnsibleInventoryFormatConstraints(unittest.TestCase):
         'octavia-health-manager',
         'octavia-infra_containers',
         'octavia-infra_all',
+        'powervm-compute_containers',
+        'powervm-compute_hosts',
+        'qemu-compute_containers',
+        'qemu-compute_hosts',
         'trove_all',
         'trove_api',
         'trove_conductor',