diff --git a/app/models.py b/app/models.py
index 72a0e3f7d..29f842c96 100644
--- a/app/models.py
+++ b/app/models.py
@@ -706,6 +706,27 @@ class TemplateProcessTypes(db.Model):
     name = db.Column(db.String(255), primary_key=True)
 
 
+class TemplateFolder(db.Model):
+    __tablename__ = 'template_folder'
+
+    id = db.Column(UUID(as_uuid=True), primary_key=True, default=uuid.uuid4)
+    service_id = db.Column(UUID(as_uuid=True), db.ForeignKey('services.id'), nullable=False)
+    name = db.Column(db.String, nullable=False)
+    parent_id = db.Column(UUID(as_uuid=True), db.ForeignKey('template_folder.id'), nullable=True)
+
+    service = db.relationship('Service')
+    parent = db.relationship('TemplateFolder', remote_side=[id], backref='children')
+
+
+template_folder_map = db.Table(
+    'template_folder_map',
+    db.Model.metadata,
+    # template_id is a primary key as a template can only belong in one folder
+    db.Column('template_id', UUID(as_uuid=True), db.ForeignKey('templates.id'), primary_key=True, nullable=False),
+    db.Column('template_folder_id', UUID(as_uuid=True), db.ForeignKey('template_folder.id'), nullable=False),
+)
+
+
 PRECOMPILED_TEMPLATE_NAME = 'Pre-compiled PDF'
 
 
@@ -837,6 +858,15 @@ class Template(TemplateBase):
     service = db.relationship('Service', backref='templates')
     version = db.Column(db.Integer, default=0, nullable=False)
 
+    folder = db.relationship(
+        'TemplateFolder',
+        secondary=template_folder_map,
+        uselist=False,
+        # eagerly load the folder whenever the template object is fetched
+        lazy='joined',
+        backref=db.backref('templates', lazy='dynamic')
+    )
+
     def get_link(self):
         # TODO: use "/v2/" route once available
         return url_for(
diff --git a/app/schemas.py b/app/schemas.py
index f4730afa5..460b52240 100644
--- a/app/schemas.py
+++ b/app/schemas.py
@@ -205,12 +205,12 @@ class ServiceSchema(BaseSchema):
     created_by = field_for(models.Service, 'created_by', required=True)
     organisation_type = field_for(models.Service, 'organisation_type')
     dvla_organisation = field_for(models.Service, 'dvla_organisation')
-    letter_logo_filename = fields.Method(method_name='get_letter_logo_filename')
+    letter_logo_filename = fields.Method(serialize='get_letter_logo_filename')
     permissions = fields.Method("service_permissions")
     email_branding = field_for(models.Service, 'email_branding')
     organisation = field_for(models.Service, 'organisation')
     override_flag = False
-    letter_contact_block = fields.Method(method_name="get_letter_contact")
+    letter_contact_block = fields.Method(serialize="get_letter_contact")
 
     def get_letter_logo_filename(self, service):
         return service.dvla_organisation.filename
diff --git a/app/status/healthcheck.py b/app/status/healthcheck.py
index da305c9e2..b0c451d0f 100644
--- a/app/status/healthcheck.py
+++ b/app/status/healthcheck.py
@@ -9,6 +9,7 @@ from app import db, version
 status = Blueprint('status', __name__)
 
 
+@status.route('/', methods=['GET'])
 @status.route('/_status', methods=['GET', 'POST'])
 def show_status():
     if request.args.get('simple', None):
diff --git a/migrations/versions/0242_template_folders.py b/migrations/versions/0242_template_folders.py
new file mode 100644
index 000000000..187ae8ec5
--- /dev/null
+++ b/migrations/versions/0242_template_folders.py
@@ -0,0 +1,39 @@
+"""
+
+Revision ID: 0242_template_folders
+Revises: 0241_another_letter_org
+Create Date: 2018-10-26 16:00:40.173840
+
+"""
+from alembic import op
+import sqlalchemy as sa
+from sqlalchemy.dialects import postgresql
+
+revision = '0242_template_folders'
+down_revision = '0241_another_letter_org'
+
+
+def upgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.create_table('template_folder',
+        sa.Column('id', postgresql.UUID(as_uuid=True), nullable=False),
+        sa.Column('service_id', postgresql.UUID(as_uuid=True), nullable=False),
+        sa.Column('name', sa.String(), nullable=False),
+        sa.Column('parent_id', postgresql.UUID(as_uuid=True), nullable=True),
+        sa.ForeignKeyConstraint(['parent_id'], ['template_folder.id'], ),
+        sa.ForeignKeyConstraint(['service_id'], ['services.id'], ),
+        sa.PrimaryKeyConstraint('id')
+    )
+    op.create_table('template_folder_map',
+        sa.Column('template_id', postgresql.UUID(as_uuid=True), nullable=False),
+        sa.Column('template_folder_id', postgresql.UUID(as_uuid=True), nullable=False),
+        sa.ForeignKeyConstraint(['template_folder_id'], ['template_folder.id'], ),
+        sa.ForeignKeyConstraint(['template_id'], ['templates.id'], ),
+        sa.PrimaryKeyConstraint('template_id')
+    )
+
+
+def downgrade():
+    op.drop_table('template_folder_map')
+    op.drop_table('template_folder')
+    # ### end Alembic commands ###
diff --git a/tests/app/service/test_archived_service.py b/tests/app/service/test_archived_service.py
index b06e7ba01..2b9d59979 100644
--- a/tests/app/service/test_archived_service.py
+++ b/tests/app/service/test_archived_service.py
@@ -11,19 +11,16 @@ from app.dao.api_key_dao import expire_api_key
 from app.dao.templates_dao import dao_update_template
 
 from tests import create_authorization_header, unwrap_function
-from tests.app.conftest import (
-    sample_template as create_template,
-    sample_api_key as create_api_key
-)
+from tests.app.db import create_template, create_api_key
 
 
-def test_archive_only_allows_post(client):
+def test_archive_only_allows_post(client, notify_db_session):
     auth_header = create_authorization_header()
     response = client.get('/service/{}/archive'.format(uuid.uuid4()), headers=[auth_header])
     assert response.status_code == 405
 
 
-def test_archive_service_errors_with_bad_service_id(client):
+def test_archive_service_errors_with_bad_service_id(client, notify_db_session):
     auth_header = create_authorization_header()
     response = client.post('/service/{}/archive'.format(uuid.uuid4()), headers=[auth_header])
     assert response.status_code == 404
@@ -38,11 +35,13 @@ def test_deactivating_inactive_service_does_nothing(client, sample_service):
 
 
 @pytest.fixture
-def archived_service(client, notify_db, notify_db_session, sample_service):
-    create_template(notify_db, notify_db_session, template_name='a')
-    create_template(notify_db, notify_db_session, template_name='b')
-    create_api_key(notify_db, notify_db_session)
-    create_api_key(notify_db, notify_db_session)
+def archived_service(client, notify_db, sample_service):
+    create_template(sample_service, template_name='a')
+    create_template(sample_service, template_name='b')
+    create_api_key(sample_service)
+    create_api_key(sample_service)
+
+    notify_db.session.commit()
 
     auth_header = create_authorization_header()
     response = client.post('/service/{}/archive'.format(sample_service.id), headers=[auth_header])
@@ -83,10 +82,10 @@ def test_deactivating_service_creates_history(archived_service):
 
 
 @pytest.fixture
-def archived_service_with_deleted_stuff(client, notify_db, notify_db_session, sample_service):
+def archived_service_with_deleted_stuff(client, sample_service):
     with freeze_time('2001-01-01'):
-        template = create_template(notify_db, notify_db_session, template_name='a')
-        api_key = create_api_key(notify_db, notify_db_session)
+        template = create_template(sample_service, template_name='a')
+        api_key = create_api_key(sample_service)
 
         expire_api_key(sample_service.id, api_key.id)
 
diff --git a/tests/app/status/test_status.py b/tests/app/status/test_status.py
index 4203a4e4d..f96289988 100644
--- a/tests/app/status/test_status.py
+++ b/tests/app/status/test_status.py
@@ -1,8 +1,9 @@
+import pytest
 from flask import json
 
 
-def test_get_status_all_ok(client):
-    path = '/_status'
+@pytest.mark.parametrize('path', ['/', '/_status'])
+def test_get_status_all_ok(client, notify_db_session, path):
     response = client.get(path)
     assert response.status_code == 200
     resp_json = json.loads(response.get_data(as_text=True))
diff --git a/tests/conftest.py b/tests/conftest.py
index e3762afd9..f50f97565 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -132,7 +132,7 @@ def os_environ():
 
 def pytest_generate_tests(metafunc):
     # Copied from https://gist.github.com/pfctdayelise/5719730
-    idparametrize = getattr(metafunc.function, 'idparametrize', None)
+    idparametrize = metafunc.definition.get_closest_marker('idparametrize')
     if idparametrize:
         argnames, testdata = idparametrize.args
         ids, argvalues = zip(*sorted(testdata.items()))