diff --git a/lib/puppet/indirector/facts/inventory_active_record.rb b/lib/puppet/indirector/facts/inventory_active_record.rb
new file mode 100644
index 000000000..6cd63ab1a
--- /dev/null
+++ b/lib/puppet/indirector/facts/inventory_active_record.rb
@@ -0,0 +1,33 @@
+require 'puppet/rails/inventory_host'
+require 'puppet/rails/inventory_fact'
+require 'puppet/indirector/active_record'
+
+class Puppet::Node::Facts::InventoryActiveRecord < Puppet::Indirector::ActiveRecord
+  def find(request)
+    host = Puppet::Rails::InventoryHost.find_by_name(request.key)
+    return nil unless host
+    facts = Puppet::Node::Facts.new(host.name, host.facts_to_hash)
+    facts.timestamp = host.timestamp
+    facts.values.each do |key,value|
+      facts.values[key] = value.first if value.is_a?(Array) && value.length == 1
+    end
+    facts
+  end
+
+  def save(request)
+    facts = request.instance
+    host = Puppet::Rails::InventoryHost.find_by_name(request.key) || Puppet::Rails::InventoryHost.create(:name => request.key, :timestamp => facts.timestamp)
+    host.timestamp = facts.timestamp
+
+    ActiveRecord::Base.transaction do
+      Puppet::Rails::InventoryFact.delete_all(:inventory_host_id => host.id)
+      # We don't want to save internal values as facts, because those are
+      # metadata that belong on the host
+      facts.values.each do |name,value|
+        next if name.to_s =~ /^_/
+        host.facts.build(:name => name, :value => value)
+      end
+      host.save
+    end
+  end
+end
diff --git a/lib/puppet/rails/database/004_add_inventory_service_tables.rb b/lib/puppet/rails/database/004_add_inventory_service_tables.rb
new file mode 100644
index 000000000..22298437a
--- /dev/null
+++ b/lib/puppet/rails/database/004_add_inventory_service_tables.rb
@@ -0,0 +1,36 @@
+class AddInventoryServiceTables < ActiveRecord::Migration
+  def self.up
+    unless ActiveRecord::Base.connection.tables.include?("inventory_hosts")
+      create_table :inventory_hosts do |t|
+        t.column :name, :string, :null => false
+        t.column :timestamp, :datetime, :null => false
+        t.column :updated_at, :datetime
+        t.column :created_at, :datetime
+      end
+
+      add_index :inventory_hosts, :name, :unique => true
+    end
+
+    unless ActiveRecord::Base.connection.tables.include?("inventory_facts")
+      create_table :inventory_facts, :id => false do |t|
+        t.column :inventory_host_id, :integer, :null => false
+        t.column :name, :string, :null => false
+        t.column :value, :text, :null => false
+      end
+
+      add_index :inventory_facts, [:inventory_host_id, :name], :unique => true
+    end
+  end
+
+  def self.down
+    unless ActiveRecord::Base.connection.tables.include?("inventory_hosts")
+      remove_index :inventory_hosts, :name
+      drop_table :inventory_hosts
+    end
+
+    if ActiveRecord::Base.connection.tables.include?("inventory_facts")
+      remove_index :inventory_facts, [:inventory_host_id, :name]
+      drop_table :inventory_facts
+    end
+  end
+end
diff --git a/lib/puppet/rails/database/schema.rb b/lib/puppet/rails/database/schema.rb
index 8b389d773..5e455d6c0 100644
--- a/lib/puppet/rails/database/schema.rb
+++ b/lib/puppet/rails/database/schema.rb
@@ -1,114 +1,131 @@
 class Puppet::Rails::Schema
   def self.init
     oldout = nil
     Puppet::Util.benchmark(Puppet, :notice, "Initialized database") do
       # We want to rewrite stdout, so we don't get migration messages.
       oldout = $stdout
       $stdout = File.open("/dev/null", "w")
       ActiveRecord::Schema.define do
         create_table :resources do |t|
           t.column :title, :text, :null => false
           t.column :restype,  :string, :null => false
           t.column :host_id, :integer
           t.column :source_file_id, :integer
           t.column :exported, :boolean
           t.column :line, :integer
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :resources, :host_id, :integer => true
         add_index :resources, :source_file_id, :integer => true
 
         # Thanks, mysql!  MySQL requires a length on indexes in text fields.
         # So, we provide them for mysql and handle everything else specially.
         # Oracle doesn't index on CLOB fields, so we skip it
         if Puppet[:dbadapter] == "mysql"
           execute "CREATE INDEX typentitle ON resources (restype,title(50));"
         elsif Puppet[:dbadapter] != "oracle_enhanced"
           add_index :resources, [:title, :restype]
         end
 
         create_table :source_files do |t|
           t.column :filename, :string
           t.column :path, :string
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :source_files, :filename
 
         create_table :resource_tags do |t|
           t.column :resource_id, :integer
           t.column :puppet_tag_id, :integer
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :resource_tags, :resource_id, :integer => true
         add_index :resource_tags, :puppet_tag_id, :integer => true
 
         create_table :puppet_tags do |t|
           t.column :name, :string
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
 
         # Oracle automatically creates a primary key index
         add_index :puppet_tags, :id, :integer => true if Puppet[:dbadapter] != "oracle_enhanced"
 
         create_table :hosts do |t|
           t.column :name, :string, :null => false
           t.column :ip, :string
           t.column :environment, :text
           t.column :last_compile, :datetime
           t.column :last_freshcheck, :datetime
           t.column :last_report, :datetime
           #Use updated_at to automatically add timestamp on save.
           t.column :updated_at, :datetime
           t.column :source_file_id, :integer
           t.column :created_at, :datetime
         end
         add_index :hosts, :source_file_id, :integer => true
         add_index :hosts, :name
 
         create_table :fact_names do |t|
           t.column :name, :string, :null => false
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :fact_names, :name
 
         create_table :fact_values do |t|
           t.column :value, :text, :null => false
           t.column :fact_name_id, :integer, :null => false
           t.column :host_id, :integer, :null => false
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :fact_values, :fact_name_id, :integer => true
         add_index :fact_values, :host_id, :integer => true
 
         create_table :param_values do |t|
           t.column :value,  :text, :null => false
           t.column :param_name_id, :integer, :null => false
           t.column :line, :integer
           t.column :resource_id, :integer
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :param_values, :param_name_id, :integer => true
         add_index :param_values, :resource_id, :integer => true
 
         create_table :param_names do |t|
           t.column :name, :string, :null => false
           t.column :updated_at, :datetime
           t.column :created_at, :datetime
         end
         add_index :param_names, :name
+
+        create_table :inventory_hosts do |t|
+          t.column :name, :string, :null => false
+          t.column :timestamp, :datetime, :null => false
+          t.column :updated_at, :datetime
+          t.column :created_at, :datetime
+        end
+
+        add_index :inventory_hosts, :name, :unique => true
+
+        create_table :inventory_facts, :id => false do |t|
+          t.column :inventory_host_id, :integer, :null => false
+          t.column :name, :string, :null => false
+          t.column :value, :text, :null => false
+        end
+
+        add_index :inventory_facts, [:inventory_host_id, :name], :unique => true
       end
     end
   ensure
     $stdout.close
     $stdout = oldout if oldout
     oldout = nil
   end
 end
 
diff --git a/lib/puppet/rails/inventory_fact.rb b/lib/puppet/rails/inventory_fact.rb
new file mode 100644
index 000000000..ecb6e41ee
--- /dev/null
+++ b/lib/puppet/rails/inventory_fact.rb
@@ -0,0 +1,6 @@
+require 'puppet/rails/inventory_host'
+
+class Puppet::Rails::InventoryFact < ::ActiveRecord::Base
+  belongs_to :host, :class_name => "Puppet::Rails::InventoryHost"
+  serialize :value
+end
diff --git a/lib/puppet/rails/inventory_host.rb b/lib/puppet/rails/inventory_host.rb
new file mode 100644
index 000000000..433e54389
--- /dev/null
+++ b/lib/puppet/rails/inventory_host.rb
@@ -0,0 +1,11 @@
+require 'puppet/rails/inventory_fact'
+
+class Puppet::Rails::InventoryHost < ::ActiveRecord::Base
+  has_many :facts, :class_name => "Puppet::Rails::InventoryFact", :dependent => :delete_all
+
+  def facts_to_hash
+    facts.inject({}) do |fact_hash,fact|
+      fact_hash.merge(fact.name => fact.value)
+    end
+  end
+end
diff --git a/spec/unit/indirector/facts/inventory_active_record_spec.rb b/spec/unit/indirector/facts/inventory_active_record_spec.rb
new file mode 100644
index 000000000..b97bada19
--- /dev/null
+++ b/spec/unit/indirector/facts/inventory_active_record_spec.rb
@@ -0,0 +1,99 @@
+#!/usr/bin/env ruby
+
+require File.dirname(__FILE__) + '/../../../spec_helper'
+require 'sqlite3' rescue nil
+require 'tempfile'
+require 'puppet/rails'
+
+describe "Puppet::Node::Facts::InventoryActiveRecord", :if => (Puppet.features.rails? and defined? SQLite3) do
+  let(:terminus) { Puppet::Node::Facts::InventoryActiveRecord.new }
+
+  before :all do
+    require 'puppet/indirector/facts/inventory_active_record'
+    @dbfile = Tempfile.new("testdb")
+    @dbfile.close
+  end
+
+  after :all do
+    Puppet::Node::Facts.indirection.reset_terminus_class
+    @dbfile.unlink
+  end
+
+  before :each do
+    Puppet::Node::Facts.terminus_class = :inventory_active_record
+    Puppet[:dbadapter]  = 'sqlite3'
+    Puppet[:dblocation] = @dbfile.path
+    Puppet[:railslog] = "/dev/null"
+    Puppet::Rails.init
+  end
+
+  after :each do
+    Puppet::Rails.teardown
+  end
+
+  describe "#save" do
+    it "should use an existing host if possible" do
+      host = Puppet::Rails::InventoryHost.new(:name => "foo", :timestamp => Time.now)
+      host.save
+      Puppet::Node::Facts.new("foo", "uptime_days" => "60", "kernel" => "Darwin").save
+
+      Puppet::Rails::InventoryHost.count.should == 1
+      Puppet::Rails::InventoryHost.first.should == host
+    end
+
+    it "should create a new host if one can't be found" do
+      # This test isn't valid if there are hosts to begin with
+      Puppet::Rails::InventoryHost.count.should == 0
+
+      Puppet::Node::Facts.new("foo", "uptime_days" => "60", "kernel" => "Darwin").save
+
+      Puppet::Rails::InventoryHost.count.should == 1
+      Puppet::Rails::InventoryHost.first.name.should == "foo"
+    end
+
+    it "should save the facts" do
+      Puppet::Node::Facts.new("foo", "uptime_days" => "60", "kernel" => "Darwin").save
+
+      Puppet::Rails::InventoryFact.all.map{|f| [f.name,f.value]}.should =~ [["uptime_days","60"],["kernel","Darwin"]]
+    end
+
+    it "should remove the previous facts for an existing host" do
+      Puppet::Node::Facts.new("foo", "uptime_days" => "30", "kernel" => "Darwin").save
+      bar_facts = Puppet::Node::Facts.new("bar", "uptime_days" => "35", "kernel" => "Linux")
+      foo_facts = Puppet::Node::Facts.new("foo", "uptime_days" => "60", "is_virtual" => "false")
+      bar_facts.save
+      foo_facts.save
+
+      Puppet::Node::Facts.find("bar").should == bar_facts
+      Puppet::Node::Facts.find("foo").should == foo_facts
+      Puppet::Rails::InventoryFact.all.map{|f| [f.name,f.value]}.should_not include(["uptime_days", "30"], ["kernel", "Darwin"])
+    end
+
+    it "should not replace the node's facts if something goes wrong" do
+    end
+  end
+
+  describe "#find" do
+    before do
+      @foo_facts = Puppet::Node::Facts.new("foo", "uptime_days" => "60", "kernel" => "Darwin")
+      @bar_facts = Puppet::Node::Facts.new("bar", "uptime_days" => "30", "kernel" => "Linux")
+      @foo_facts.save
+      @bar_facts.save
+    end
+
+    it "should identify facts by host name" do
+      Puppet::Node::Facts.find("foo").should == @foo_facts
+    end
+
+    it "should return nil if no host instance can be found" do
+      Puppet::Node::Facts.find("non-existent host").should == nil
+    end
+
+    it "should convert all single-member arrays into non-arrays" do
+      Puppet::Node::Facts.new("array", "fact1" => ["value1"]).save
+
+      Puppet::Node::Facts.find("array").values["fact1"].should == "value1"
+    end
+  end
+end
+