diff --git a/.rubocop_todo.yml b/.rubocop_todo.yml
index 6b9cffc92..bb4a0ee90 100644
--- a/.rubocop_todo.yml
+++ b/.rubocop_todo.yml
@@ -40,6 +40,7 @@ Metrics/AbcSize:
 # Configuration parameters: CountComments, Max, CountAsOne.
 Metrics/ClassLength:
   Exclude:
+    - 'app/controllers/admin/chapters_controller.rb'
     - 'app/controllers/admin/workshops_controller.rb'
     - 'app/controllers/application_controller.rb'
     - 'app/controllers/events_controller.rb'
diff --git a/app/controllers/admin/chapters_controller.rb b/app/controllers/admin/chapters_controller.rb
index 06d0f8127..4c472ae29 100644
--- a/app/controllers/admin/chapters_controller.rb
+++ b/app/controllers/admin/chapters_controller.rb
@@ -9,9 +9,12 @@ def new
 
   def create
     @chapter = Chapter.new(chapter_params)
-    authorize(@chapter)
+    authorize @chapter
+
+    result = ChapterCreationService.call(chapter_params)
+    @chapter = result.chapter
 
-    if @chapter.save
+    if result.success
       flash[:notice] = "Chapter #{@chapter.name} has been successfully created"
       redirect_to [:admin, @chapter]
     else
diff --git a/app/controllers/admin/groups_controller.rb b/app/controllers/admin/groups_controller.rb
index 3abf00058..cf9820418 100644
--- a/app/controllers/admin/groups_controller.rb
+++ b/app/controllers/admin/groups_controller.rb
@@ -1,24 +1,6 @@
 class Admin::GroupsController < Admin::ApplicationController
   after_action :verify_authorized
 
-  def new
-    @group = Group.new
-    authorize @group
-  end
-
-  def create
-    @group = Group.new(group_params)
-    authorize @group
-
-    if @group.save
-      flash[:notice] = "Group #{@group.name} for chapter #{@group.chapter.name} has been successfully created"
-      redirect_to [:admin, @group]
-    else
-      flash[:notice] = @group.errors.full_messages
-      render 'new'
-    end
-  end
-
   def show
     @group = Group.find(params[:id])
     authorize @group
@@ -27,10 +9,4 @@ def show
     @total_count = @group.members.count
     @pagy, @members = pagy(Group.members_by_recent_rsvp(@group), items: 20)
   end
-
-  private
-
-  def group_params
-    params.expect(group: %i[name description chapter_id])
-  end
 end
diff --git a/app/policies/group_policy.rb b/app/policies/group_policy.rb
index 5e3d40e70..984476220 100644
--- a/app/policies/group_policy.rb
+++ b/app/policies/group_policy.rb
@@ -1,8 +1,4 @@
 class GroupPolicy < ApplicationPolicy
-  def create?
-    user.is_admin?
-  end
-
   def show?
     admin_or_chapter_organiser?
   end
diff --git a/app/services/chapter_creation_service.rb b/app/services/chapter_creation_service.rb
new file mode 100644
index 000000000..e4bafdde5
--- /dev/null
+++ b/app/services/chapter_creation_service.rb
@@ -0,0 +1,17 @@
+class ChapterCreationService
+  Result = Data.define(:chapter, :success, :errors)
+
+  def self.call(params)
+    chapter = Chapter.new(params)
+
+    ActiveRecord::Base.transaction do
+      chapter.save!
+      chapter.groups.create!(name: 'Students')
+      chapter.groups.create!(name: 'Coaches')
+    end
+
+    Result.new(chapter: chapter, success: true, errors: nil)
+  rescue ActiveRecord::RecordInvalid => e
+    Result.new(chapter: chapter, success: false, errors: e.message)
+  end
+end
diff --git a/app/views/admin/groups/new.html.haml b/app/views/admin/groups/new.html.haml
deleted file mode 100644
index 1866a536d..000000000
--- a/app/views/admin/groups/new.html.haml
+++ /dev/null
@@ -1,13 +0,0 @@
-.container.py-4.py-lg-5
-  .row.mb-4
-    .col
-      %h1 New Group
-
-  .row
-    .col.col-lg-8
-      = simple_form_for [:admin, @group] do |f|
-        = f.input :name, label: 'Name', collection: Group::NAMES
-        = f.input :description, input_html: { rows: 3 }
-        = f.association :chapter, required: true
-        .text-right
-          = f.button :button, 'Create group', class: 'btn btn-primary'
diff --git a/app/views/layouts/_admin_menu.html.haml b/app/views/layouts/_admin_menu.html.haml
index d457a637b..67e469646 100644
--- a/app/views/layouts/_admin_menu.html.haml
+++ b/app/views/layouts/_admin_menu.html.haml
@@ -24,9 +24,6 @@
 %li
   = link_to new_admin_chapter_path, class: 'dropdown-item' do
     New chapter
-%li
-  = link_to new_admin_group_path, class: 'dropdown-item' do
-    New group
 %li
   = link_to admin_testimonials_path, class: 'dropdown-item' do
     Testimonials
diff --git a/config/routes.rb b/config/routes.rb
index ebcd1a730..41f128025 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -133,7 +133,7 @@
     end
 
     resources :meeting_invitations, only: %i[create update]
-    resources :groups, only: %i[index new create show]
+    resources :groups, only: %i[show]
     resources :sponsors, except: [:destroy]
     resources :feedback, only: [:index]
     resources :contacts
diff --git a/spec/controllers/admin/chapters_controller_spec.rb b/spec/controllers/admin/chapters_controller_spec.rb
index 01bdea3a3..ea641430f 100644
--- a/spec/controllers/admin/chapters_controller_spec.rb
+++ b/spec/controllers/admin/chapters_controller_spec.rb
@@ -5,6 +5,29 @@
     login_as_admin(admin)
   end
 
+  describe '#create' do
+    context 'when a chapter-scoped organiser creates a chapter' do
+      let(:organiser) { Fabricate(:chapter_organiser) }
+
+      before do
+        login(organiser)
+      end
+
+      it 'is denied before anything is persisted' do
+        expect do
+          post :create, params: { chapter: {
+            name: 'codebar Brighton',
+            email: 'brighton@codebar.io',
+            city: 'Brighton',
+            time_zone: 'London'
+          } }
+        end.not_to(change { [Chapter.count, Group.count] })
+
+        expect(response).to redirect_to(root_path)
+      end
+    end
+  end
+
   describe '#status' do
     it 'renders successfully with default 6 months' do
       get :status
diff --git a/spec/features/admin/chapters_spec.rb b/spec/features/admin/chapters_spec.rb
index 4f6dac954..0335024c5 100644
--- a/spec/features/admin/chapters_spec.rb
+++ b/spec/features/admin/chapters_spec.rb
@@ -27,6 +27,23 @@
       click_on 'Create chapter'
 
       expect(page).to have_text('Chapter codebar Brighton has been successfully created')
+
+      chapter = Chapter.find_by(name: 'codebar Brighton')
+      expect(chapter.groups.pluck(:name)).to match_array(%w[Students Coaches])
+    end
+
+    scenario 'an admin submitting an invalid form sees validation errors and no chapter is created' do
+      visit new_admin_chapter_path
+
+      fill_in 'Name', with: ''
+      fill_in 'Email', with: ''
+      fill_in 'City', with: 'Brighton'
+
+      click_on 'Create chapter'
+
+      expect(page).to have_text("Name can't be blank")
+      expect(page).to have_text("Email can't be blank")
+      expect(Chapter.count).to eq(0)
     end
   end
 
diff --git a/spec/features/admin/groups_spec.rb b/spec/features/admin/groups_spec.rb
index 8785ff2a4..769d6c5ef 100644
--- a/spec/features/admin/groups_spec.rb
+++ b/spec/features/admin/groups_spec.rb
@@ -1,23 +1,4 @@
 RSpec.feature 'admin groups', type: :feature do
-  describe '#creating a new group' do
-    let(:member) { Fabricate(:member) }
-
-    before do
-      Fabricate(:chapter, name: 'Brighton')
-      login_as_admin(member)
-    end
-
-    scenario 'an admin can create a new chapter' do
-      visit new_admin_group_path
-
-      select 'Students', from: 'group[name]'
-      select 'Brighton', from: 'group[chapter_id]'
-      click_on 'Create group'
-
-      expect(page).to have_text('Group Students for chapter Brighton has been successfully created')
-    end
-  end
-
   describe '#show page' do
     let(:member) { Fabricate(:member) }
     let(:chapter) { Fabricate(:chapter, name: 'Brighton') }
diff --git a/spec/policies/group_policy_spec.rb b/spec/policies/group_policy_spec.rb
index 77b54223e..658a5280e 100644
--- a/spec/policies/group_policy_spec.rb
+++ b/spec/policies/group_policy_spec.rb
@@ -5,24 +5,6 @@
   let(:admin) { Fabricate(:member).tap { |m| m.add_role(:admin) } }
   let(:regular_member) { Fabricate(:member) }
 
-  describe '#create?' do
-    context 'when user is admin' do
-      let(:user) { admin }
-
-      it 'permits access' do
-        expect(policy.create?).to be true
-      end
-    end
-
-    context 'when user is regular member' do
-      let(:user) { regular_member }
-
-      it 'denies access' do
-        expect(policy.create?).to be false
-      end
-    end
-  end
-
   describe '#show?' do
     context 'when user is admin' do
       let(:user) { admin }
diff --git a/spec/services/chapter_creation_service_spec.rb b/spec/services/chapter_creation_service_spec.rb
new file mode 100644
index 000000000..c9a56ab31
--- /dev/null
+++ b/spec/services/chapter_creation_service_spec.rb
@@ -0,0 +1,43 @@
+RSpec.describe ChapterCreationService do
+  let(:valid_params) do
+    {
+      name: 'codebar Brighton',
+      email: 'brighton@codebar.io',
+      city: 'Brighton',
+      time_zone: 'London'
+    }
+  end
+
+  describe '.call' do
+    it 'creates chapter with Students and Coaches groups' do
+      result = described_class.call(valid_params)
+
+      expect(result.success).to be true
+      expect(result.chapter.persisted?).to be true
+      expect(result.chapter.groups.pluck(:name)).to match_array(%w[Students Coaches])
+    end
+
+    it 'fails when chapter params are invalid' do
+      invalid_params = valid_params.merge(name: '')
+      result = described_class.call(invalid_params)
+
+      expect(result.success).to be false
+      expect(result.errors).to be_present
+      expect(Chapter.where(name: '')).not_to exist
+    end
+
+    it 'rolls back chapter if groups fail' do
+      # 'bogus' is not in Group::NAMES, so the group fails its real
+      # inclusion validation and save! raises RecordInvalid inside the
+      # service's transaction.
+      invalid_group = Group.new(name: 'bogus')
+      allow(Group).to receive(:new).and_return(invalid_group)
+
+      result = described_class.call(valid_params)
+
+      expect(result.success).to be false
+      expect(result.errors).to be_present
+      expect(Chapter.where(name: valid_params[:name])).not_to exist
+    end
+  end
+end