diff --git a/nova/auth/manager.py b/nova/auth/manager.py
index d5fbec7c..6aa5721c 100644
--- a/nova/auth/manager.py
+++ b/nova/auth/manager.py
@@ -640,11 +640,17 @@ class AuthManager(object):
         with self.driver() as drv:
             user_dict = drv.create_user(name, access, secret, admin)
             if user_dict:
+                db.security_group_create(context={},
+                                         values={ 'name' : 'default',
+                                                  'description' : 'default',
+                                                  'user_id' : name })
                 return User(**user_dict)
 
     def delete_user(self, user):
         """Deletes a user"""
         with self.driver() as drv:
+            for security_group in db.security_group_get_by_user(context = {}, user_id=user.id):
+                db.security_group_destroy({}, security_group.id)
             drv.delete_user(User.safe_id(user))
 
     def generate_key_pair(self, user, key_name):
diff --git a/nova/endpoint/cloud.py b/nova/endpoint/cloud.py
index 44997be5..7df8bd08 100644
--- a/nova/endpoint/cloud.py
+++ b/nova/endpoint/cloud.py
@@ -212,10 +212,12 @@ class CloudController(object):
         return True
 
     @rbac.allow('all')
-    def describe_security_groups(self, context, group_names, **kwargs):
-        groups = {'securityGroupSet': []}
+    def describe_security_groups(self, context, **kwargs):
+        groups = {'securityGroupSet': 
+                    [{ 'groupDescription': group.description,
+                       'groupName' : group.name,
+                       'ownerId': context.user.id } for group in db.security_group_get_by_user(context, context.user.id) ] }
 
-        # Stubbed for now to unblock other things.
         return groups
 
     @rbac.allow('netadmin')
@@ -223,7 +225,11 @@ class CloudController(object):
         return True
 
     @rbac.allow('netadmin')
-    def create_security_group(self, context, group_name, **kwargs):
+    def create_security_group(self, context, group_name, group_description):
+        db.security_group_create(context,
+                                 values = { 'user_id' : context.user.id,
+                                            'name': group_name,
+                                            'description': group_description })
         return True
 
     @rbac.allow('netadmin')
diff --git a/nova/tests/api_unittest.py b/nova/tests/api_unittest.py
index 462d1b29..87d99607 100644
--- a/nova/tests/api_unittest.py
+++ b/nova/tests/api_unittest.py
@@ -185,6 +185,9 @@ class ApiEc2TestCase(test.BaseTestCase):
         self.host = '127.0.0.1'
 
         self.app = api.APIServerApplication({'Cloud': self.cloud})
+
+    def expect_http(self, host=None, is_secure=False):
+        """Returns a new EC2 connection"""
         self.ec2 = boto.connect_ec2(
                 aws_access_key_id='fake',
                 aws_secret_access_key='fake',
@@ -194,9 +197,6 @@ class ApiEc2TestCase(test.BaseTestCase):
                 path='/services/Cloud')
 
         self.mox.StubOutWithMock(self.ec2, 'new_http_connection')
-
-    def expect_http(self, host=None, is_secure=False):
-        """Returns a new EC2 connection"""
         http = FakeHttplibConnection(
                 self.app, '%s:%d' % (self.host, FLAGS.cc_port), False)
         # pylint: disable-msg=E1103
@@ -231,3 +231,31 @@ class ApiEc2TestCase(test.BaseTestCase):
         self.assertEquals(len(results), 1)
         self.manager.delete_project(project)
         self.manager.delete_user(user)
+
+    def test_get_all_security_groups(self):
+        """Test that operations on security groups stick"""
+        self.expect_http()
+        self.mox.ReplayAll()
+        security_group_name = "".join(random.choice("sdiuisudfsdcnpaqwertasd") \
+                                      for x in range(random.randint(4, 8)))
+        user = self.manager.create_user('fake', 'fake', 'fake', admin=True)
+        project = self.manager.create_project('fake', 'fake', 'fake')
+
+        rv = self.ec2.get_all_security_groups()
+        self.assertEquals(len(rv), 1)
+        self.assertEquals(rv[0].name,  'default')
+
+        self.expect_http()
+        self.mox.ReplayAll()
+
+        self.ec2.create_security_group(security_group_name, 'test group')
+
+        self.expect_http()
+        self.mox.ReplayAll()
+
+        rv = self.ec2.get_all_security_groups()
+        self.assertEquals(len(rv), 2)
+        self.assertTrue(security_group_name in [group.name for group in rv])
+
+        self.manager.delete_project(project)
+        self.manager.delete_user(user)