diff --git a/core/internal/iam/BUILD.bazel b/core/internal/iam/BUILD.bazel
new file mode 100644
index 0000000..f737d5c
--- /dev/null
+++ b/core/internal/iam/BUILD.bazel
@@ -0,0 +1,22 @@
+load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library")
+
+go_library(
+    name = "go_default_library",
+    srcs = [
+        "capabilities.go",
+        "policies.go",
+    ],
+    importpath = "git.monogon.dev/source/nexantic.git/core/internal/iam",
+    visibility = ["//visibility:private"],
+    deps = [
+        "@com_github_open_policy_agent_opa//ast:go_default_library",
+        "@com_github_open_policy_agent_opa//rego:go_default_library",
+        "@com_github_open_policy_agent_opa//util:go_default_library",
+    ],
+)
+
+go_binary(
+    name = "iam",
+    embed = [":go_default_library"],
+    visibility = ["//:__subpackages__"],
+)
diff --git a/core/internal/iam/README.md b/core/internal/iam/README.md
new file mode 100644
index 0000000..07635ad
--- /dev/null
+++ b/core/internal/iam/README.md
@@ -0,0 +1,102 @@
+## Smalltown IAM
+
+There are 4 kinds of elements in Smalltown's Authorization system
+* Identities
+    * User
+    * Key
+    * Module
+* Objects
+    * Key
+    * Secret
+    * Module
+* Policies
+* Permissions
+
+### Identity
+Identities represent an actor that can execute **actions** like editing or interacting with an object.
+
+Identities possess **permissions** and **properties** which can be accessed by policies.
+
+### Objects
+Objects are things that can be interacted with like keys, secrets or modules.
+
+Each object has a **policy** that handles authorization of **actions** performed on it.
+
+When an object is created a default policy is attached which forwards all decisions to the global policy.
+For the first iteration of the system this policy will not be modifiable.
+
+**WARNING**: by modifying a policy, an object could become inaccessible!
+
+### Permissions
+
+Permissions can be assigned to an identity.
+
+| Property | Description | Example |
+|----------|-------------|---------|
+| Allowed Action | Regex specifying the allowed actions | key:meta:edit |
+| Object | Regex specifying the objects this affects | keys:* |
+| Multisig | Number of approvals required | 2 |
+
+Optionally a permission can have a multisig flag that requires N approvals from identities with the same permission.
+
+### Policies
+
+Policies guard actions that are performed on an object.
+
+By default a global policy governs all objects and global actions using an AWS IAM like model. 
+
+Potentially a dynamic model using attachable policies could be implemented in the future to allow
+for highly custom models.
+
+A potential graphical representation of a future policy:
+
+![graphical representation](https://i.imgur.com/CuURwjr.png)
+
+### Global Default Ruleset
+
+This default global policy defines an AWS IAM like permission system.
+
+The following actions are implemented on objects:
+
+| Category | Action | Description | Note |
+|----------|-------------|---------|---------|
+| Object | object:view | Allow to view the object | Cannot be scripted using the policy builder |
+| Object | object:delete | Allow to delete the object |
+| Object | object:attach:normal | Allow to attach the object to a module slot |
+| Object | object:attach:exclusive | Allow to attach the object to an exclusive module slot |
+| Object | object:policy:view | Allow to view the object's attached policy |
+| Object | object:policy:edit | Allow to edit the object's attached policy |
+| Object | object:audit:view | Allow to view the object's audit log |
+| Object:Key | key:sign:eddsa | Allow to sign using the key |
+| Object:Key | key:sign:ecdsa | Allow to sign using the key |
+| Object:Key | key:sign:rsa | Allow to sign using the key |
+| Object:Key | key:encrypt:rsa | Allow to encrypt using the key |
+| Object:Key | key:encrypt:des | Allow to encrypt using the key |
+| Object:Key | key:encrypt:3des| Allow to encrypt using the key |
+| Object:Key | key:encrypt:aes | Allow to encrypt using the key |
+| Object:Key | key:decrypt:rsa | Allow to decrypt using the key |
+| Object:Key | key:decrypt:des | Allow to decrypt using the key |
+| Object:Key | key:decrypt:3des| Allow to decrypt using the key |
+| Object:Key | key:decrypt:aes | Allow to decrypt using the key |
+| Object:Key | key:auth:hmac | Allow to auth messages using the key |
+| Object:Secret | secret:reveal | Allow to reveal a secret to the identity |
+| Object:Module | module:update | Allow to update a module's bytecode | Updates verify the module signature
+| Object:Module | module:config | Allow to configure a module | Assigning objects to slots requires additional permissions on that object
+| Object:Module | module:call:* | Allow to call a function of the module | Function names are defined in the module and vary between modules
+
+The following actions are implemented globally:
+
+| Category | Action | Description | Note |
+|----------|-------------|---------|---------|
+| Object | g:key:generate | Allow to generate a key |
+| Object | g:key:import | Allow to import a key |
+| Object | g:secret:import | Allow to import a secret |
+| Object | g:module:install | Allow to install a module |
+| Object | g:user:create | Allow to create a user |
+| Object | g:user:permission_remove | Allow to create a user | **Privilege Escalation Risk**: Recommend Multisig
+| Object | g:user:permission_add | Allow to create a user | **Privilege Escalation Risk**: Recommend Multisig
+| Object | g:cluster:view | Allow to view cluster nodes
+| Object | g:cluster:add | Allow to add a node to the cluster | **Dangerous**: Recommend Multisig
+| Object | g:cluster:remove | Allow to remove a node from the cluster | **Dangerous**: Recommend Multisig
+| Object | g:config:edit | Allow to edit the global config
+
diff --git a/core/internal/iam/capabilities.go b/core/internal/iam/capabilities.go
new file mode 100644
index 0000000..1c692a3
--- /dev/null
+++ b/core/internal/iam/capabilities.go
@@ -0,0 +1,23 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// 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.
+
+package main
+
+type (
+	Capability struct {
+		Name string
+	}
+)
diff --git a/core/internal/iam/policies.go b/core/internal/iam/policies.go
new file mode 100644
index 0000000..b17b623
--- /dev/null
+++ b/core/internal/iam/policies.go
@@ -0,0 +1,69 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// 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.
+
+package main
+
+import (
+	"context"
+	"fmt"
+	"github.com/open-policy-agent/opa/ast"
+	"github.com/open-policy-agent/opa/rego"
+	"github.com/open-policy-agent/opa/util"
+)
+
+type dataSetProfile struct {
+	numTokens int
+	numPaths  int
+}
+
+func main() {
+	ctx := context.Background()
+	compiler := ast.NewCompiler()
+	module := ast.MustParseModule(policy)
+
+	compiler.Compile(map[string]*ast.Module{"": module})
+	if compiler.Failed() {
+	}
+
+	r := rego.New(
+		rego.Compiler(compiler),
+		rego.Input(util.MustUnmarshalJSON([]byte(`{
+			"token_id": "deadbeef",
+			"path": "mna",
+			"method": "GET"
+		}`))),
+		rego.Query("data.restauthz"),
+	)
+
+	rs, err := r.Eval(ctx)
+	if err != nil {
+		panic(err)
+	}
+	fmt.Printf("%v", rs)
+}
+
+const policy = `package restauthz
+
+default allow = false
+
+allow {
+	input.method == "GET"
+}
+
+allow {
+	not input.method == "GET"
+}
+`