diff --git a/src/github.com/matrix-org/dendrite/cmd/dendrite-monolith-server/main.go b/src/github.com/matrix-org/dendrite/cmd/dendrite-monolith-server/main.go
index a96b5ae3..49ba614e 100644
--- a/src/github.com/matrix-org/dendrite/cmd/dendrite-monolith-server/main.go
+++ b/src/github.com/matrix-org/dendrite/cmd/dendrite-monolith-server/main.go
@@ -19,6 +19,7 @@ import (
 	"net/http"
 
 	"github.com/matrix-org/dendrite/common/keydb"
+	"github.com/matrix-org/dendrite/paginationapi"
 
 	"github.com/matrix-org/dendrite/clientapi"
 	"github.com/matrix-org/dendrite/common"
@@ -56,6 +57,7 @@ func main() {
 	publicroomsapi.SetupPublicRoomsAPIComponent(base, deviceDB)
 	roomserver.SetupRoomServerComponentWithDB(base, roomserverDB)
 	syncapi.SetupSyncAPIComponent(base, deviceDB, accountDB)
+	paginationapi.SetupPaginationAPIComponent(base, deviceDB)
 
 	httpHandler := common.WrapHandlerInCORS(base.APIMux)
 
diff --git a/src/github.com/matrix-org/dendrite/common/config/config.go b/src/github.com/matrix-org/dendrite/common/config/config.go
index 39607d95..58afb48e 100644
--- a/src/github.com/matrix-org/dendrite/common/config/config.go
+++ b/src/github.com/matrix-org/dendrite/common/config/config.go
@@ -165,6 +165,9 @@ type Dendrite struct {
 		// The PublicRoomsAPI database stores information used to compute the public
 		// room directory. It is only accessed by the PublicRoomsAPI server.
 		PublicRoomsAPI DataSource `yaml:"public_rooms_api"`
+		// The PaginationAPI database stores information used to fulfill
+		// pagination requests.
+		PaginationAPI DataSource `yaml:"pagination_api"`
 		// The Naffka database is used internally by the naffka library, if used.
 		Naffka DataSource `yaml:"naffka,omitempty"`
 	} `yaml:"database"`
diff --git a/src/github.com/matrix-org/dendrite/paginationapi/consumers/roomserver.go b/src/github.com/matrix-org/dendrite/paginationapi/consumers/roomserver.go
new file mode 100644
index 00000000..23c180bb
--- /dev/null
+++ b/src/github.com/matrix-org/dendrite/paginationapi/consumers/roomserver.go
@@ -0,0 +1,56 @@
+// Copyright 2017 New Vector Ltd
+//
+// 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 consumers
+
+import (
+	"context"
+
+	"github.com/matrix-org/dendrite/paginationapi/storage"
+	"github.com/matrix-org/dendrite/roomserver/api"
+)
+
+// OutputRoomEventConsumer consumes events that originated in the room server.
+type OutputRoomEventConsumer struct {
+	db *storage.PaginationAPIDatabase
+}
+
+// NewOutputRoomEventConsumer creates a new OutputRoomEventConsumer.
+func NewOutputRoomEventConsumer(db *storage.PaginationAPIDatabase) *OutputRoomEventConsumer {
+	s := &OutputRoomEventConsumer{db: db}
+
+	return s
+}
+
+// ProcessNewRoomEvent implements output.ProcessOutputEventHandler
+func (s *OutputRoomEventConsumer) ProcessNewRoomEvent(
+	ctx context.Context, msg *api.OutputNewRoomEvent,
+) error {
+
+	return s.db.AddEvent(ctx, &msg.Event)
+}
+
+// ProcessNewInviteEvent implements output.ProcessOutputEventHandler
+func (s *OutputRoomEventConsumer) ProcessNewInviteEvent(
+	ctx context.Context, msg *api.OutputNewInviteEvent,
+) error {
+	return nil
+}
+
+// ProcessRetireInviteEvent implements output.ProcessOutputEventHandler
+func (s *OutputRoomEventConsumer) ProcessRetireInviteEvent(
+	ctx context.Context, msg *api.OutputRetireInviteEvent,
+) error {
+	return nil
+}
diff --git a/src/github.com/matrix-org/dendrite/paginationapi/paginationapi.go b/src/github.com/matrix-org/dendrite/paginationapi/paginationapi.go
new file mode 100644
index 00000000..f2d408ee
--- /dev/null
+++ b/src/github.com/matrix-org/dendrite/paginationapi/paginationapi.go
@@ -0,0 +1,42 @@
+// Copyright 2017 New Vector Ltd
+//
+// 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 paginationapi
+
+import (
+	"github.com/matrix-org/dendrite/clientapi/auth/storage/devices"
+	"github.com/matrix-org/dendrite/common/basecomponent"
+	"github.com/matrix-org/dendrite/paginationapi/consumers"
+	"github.com/matrix-org/dendrite/paginationapi/storage"
+	"github.com/sirupsen/logrus"
+)
+
+// SetupPaginationAPIComponent sets up and registers HTTP handlers for the PaginationAPI
+// component.
+func SetupPaginationAPIComponent(
+	base *basecomponent.BaseDendrite,
+	deviceDB *devices.Database,
+) {
+	tracer := base.CreateNewTracer("PaginationAPI")
+
+	paginationDB, err := storage.NewPaginationAPIDatabase(string(base.Cfg.Database.PaginationAPI))
+	if err != nil {
+		logrus.WithError(err).Panicf("failed to connect to pagination api db")
+	}
+
+	handler := consumers.NewOutputRoomEventConsumer(paginationDB)
+	base.StartRoomServerConsumer(tracer, paginationDB, handler)
+
+	// routing.Setup(base.APIMux, deviceDB, publicRoomsDB)
+}
diff --git a/src/github.com/matrix-org/dendrite/paginationapi/storage/events.go b/src/github.com/matrix-org/dendrite/paginationapi/storage/events.go
new file mode 100644
index 00000000..7e51a781
--- /dev/null
+++ b/src/github.com/matrix-org/dendrite/paginationapi/storage/events.go
@@ -0,0 +1,278 @@
+// Copyright 2017 New Ltd
+//
+// 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 storage
+
+import (
+	"context"
+	"database/sql"
+
+	"github.com/matrix-org/dendrite/common"
+	"github.com/matrix-org/gomatrixserverlib"
+)
+
+const eventBucketsSchema = `
+CREATE TABLE IF NOT EXISTS paginationapi_events (
+	id BIGSERIAL PRIMARY KEY,
+	event_id TEXT NOT NULL,
+	bucket_id BIGINT
+);
+
+CREATE UNIQUE INDEX IF NOT EXISTS paginationapi_events_event_id_idx ON paginationapi_events(event_id);
+
+CREATE TABLE IF NOT EXISTS paginationapi_event_edges (
+	parent_id BIGINT NOT NULL,
+	child_id BIGINT NOT NULL
+);
+
+CREATE INDEX IF NOT EXISTS paginationapi_event_edges_parent_idx ON paginationapi_event_edges(parent_id);
+CREATE INDEX IF NOT EXISTS paginationapi_event_edges_child_idx ON paginationapi_event_edges(child_id);
+
+CREATE TABLE IF NOT EXISTS paginationapi_rooms (
+	id BIGSERIAL PRIMARY KEY,
+	room_id TEXT NOT NULL
+);
+
+CREATE TABLE IF NOT EXISTS paginationapi_buckets (
+	id BIGSERIAL PRIMARY KEY,
+	room_id BIGINT NOT NULL,
+	previous_bucket BIGINT,
+	missing_event_ids TEXT[]
+);
+
+CREATE INDEX IF NOT EXISTS paginationapi_buckets_previous_idx ON paginationapi_buckets(previous_bucket);
+
+CREATE TABLE IF NOT EXISTS paginationapi_latest_buckets (
+	room_id BIGINT NOT NULL,
+	bucket_id BIGINT NOT NULL
+);
+
+CREATE UNIQUE INDEX IF NOT EXISTS paginationapi_latest_buckets_idx ON paginationapi_latest_buckets(room_id);
+`
+
+const getBucketForEventSQL = `SELECT bucket_id FROM paginationapi_events WHERE event_id = $1`
+
+const getBucketsForParentEventsSQL = `
+SELECT
+	p.bucket_id
+FROM paginationapi_event_edges
+	INNER JOIN paginationapi_events AS p
+		ON parent_id = p.id
+	INNER JOIN paginationapi_events AS c
+		ON child_id = c.id
+WHERE
+	c.event_id = $1
+	AND p.bucket_id IS NOT NULL
+`
+
+const latestBucketSQL = `
+SELECT bucket_id FROM paginationapi_latest_buckets AS l
+INNER JOIN paginationapi_rooms AS r ON r.id = l.room_id
+WHERE r.room_id = $1
+`
+
+type eventBucketsStatements struct {
+	getBucketForEventStmt         *sql.Stmt
+	getBucketsForParentEventsStmt *sql.Stmt
+	latestBucketStmt              *sql.Stmt
+}
+
+func (s *eventBucketsStatements) prepare(db *sql.DB) (err error) {
+	_, err = db.Exec(eventBucketsSchema)
+	if err != nil {
+		return
+	}
+	if s.getBucketForEventStmt, err = db.Prepare(getBucketForEventSQL); err != nil {
+		return
+	}
+	if s.getBucketsForParentEventsStmt, err = db.Prepare(getBucketsForParentEventsSQL); err != nil {
+		return
+	}
+	if s.latestBucketStmt, err = db.Prepare(latestBucketSQL); err != nil {
+		return
+	}
+	return
+}
+
+func (s *eventBucketsStatements) isAfter(ctx context.Context, txn *sql.Tx, a uint, b uint) (bool, error) {
+	return a < b, nil
+}
+
+func (s *eventBucketsStatements) getEarliestBucketForEvent(ctx context.Context, txn *sql.Tx, eventID string) (*uint, error) {
+	rows, err := common.TxStmt(txn, s.getBucketsForParentEventsStmt).QueryContext(ctx, eventID)
+	if err != nil {
+		return nil, err
+	}
+	defer rows.Close() // nolint: errcheck
+
+	var minBucketID *uint
+	for rows.Next() {
+		var bucketID uint
+		if err = rows.Scan(&bucketID); err != nil {
+			return nil, err
+		}
+
+		if minBucketID == nil {
+			minBucketID = &bucketID
+			continue
+		}
+
+		isAfter, err := s.isAfter(ctx, txn, bucketID, *minBucketID)
+		if err != nil {
+			return nil, err
+		}
+
+		if isAfter {
+			minBucketID = &bucketID
+		}
+	}
+
+	return minBucketID, nil
+}
+
+func (s *eventBucketsStatements) getLatestBucketForEvents(ctx context.Context, txn *sql.Tx, eventIDs []string) (*uint, error) {
+	var maxBucketID *uint
+
+	// FIXME: This can be done via postgres arrays! \o/
+
+	stmt := common.TxStmt(txn, s.getBucketForEventStmt)
+	for _, eventID := range eventIDs {
+		var bucketID *uint
+		err := stmt.QueryRowContext(ctx, eventID).Scan(&bucketID)
+		if err != nil && err != sql.ErrNoRows {
+			return nil, err
+		}
+
+		if bucketID == nil {
+			continue
+		}
+
+		if maxBucketID == nil {
+			maxBucketID = bucketID
+		}
+
+		isAfter, err := s.isAfter(ctx, txn, *maxBucketID, *bucketID)
+		if err != nil {
+			return nil, err
+		}
+		if isAfter {
+			maxBucketID = bucketID
+		}
+	}
+
+	return nil, nil
+}
+
+func (s *eventBucketsStatements) getLatestBucketID(ctx context.Context, txn *sql.Tx, roomID string) (*uint, error) {
+	stmt := common.TxStmt(txn, s.latestBucketStmt)
+
+	var bucketID sql.NullInt64
+	err := stmt.QueryRowContext(ctx, roomID).Scan(&bucketID)
+
+	if err == sql.ErrNoRows {
+		return nil, nil
+	}
+
+	if err != nil {
+		return nil, err
+	}
+
+	if bucketID.Valid {
+		result := uint(bucketID.Int64)
+		return &result, nil
+	}
+
+	return nil, nil
+}
+
+func (s *eventBucketsStatements) insertIntoOrBeforeBucket(
+	ctx context.Context, txn *sql.Tx, event *gomatrixserverlib.Event, bucketID uint,
+) error {
+	panic("not implemented")
+}
+
+func (s *eventBucketsStatements) insertIntoOrAfterBucket(
+	ctx context.Context, txn *sql.Tx, event *gomatrixserverlib.Event, bucketID uint,
+) error {
+	// TODO: Create a new bucket if there are already too many events in that
+	// bucket
+
+	_, err := txn.ExecContext(
+		ctx, "INSERT INTO paginationapi_events (event_id, bucket_id) VALUES ($1, $2)",
+		event.EventID(), bucketID,
+	)
+	return err
+}
+
+func (s *eventBucketsStatements) insertAfterBucket(
+	ctx context.Context, txn *sql.Tx, event *gomatrixserverlib.Event, bucketID uint,
+) error {
+	var roomNID uint
+	err := txn.QueryRowContext(
+		ctx, "SELECT room_id FROM paginationapi_rooms WHERE room_id = $1", event.RoomID(),
+	).Scan(&roomNID)
+
+	if err != nil {
+		return err
+	}
+
+	// TODO: Add missing_event_ids
+
+	var newBucketID uint
+	err = txn.QueryRowContext(
+		ctx, "INSERT INTO paginationapi_buckets (room_id, previous_bucket) VALUES ($1, $2) RETURNING id",
+		roomNID, bucketID,
+	).Scan(&newBucketID)
+
+	if err != nil {
+		return err
+	}
+
+	_, err = txn.ExecContext(
+		ctx, "INSERT INTO paginationapi_latest_buckets (room_id, bucket_id) VALUES ($1, $2) ON CONFLICT (room_id) DO UPDATE SET bucket_id = $2",
+		roomNID, newBucketID,
+	)
+
+	return err
+}
+
+func (s *eventBucketsStatements) createBucketAndInsert(
+	ctx context.Context, txn *sql.Tx, event *gomatrixserverlib.Event,
+) error {
+	var roomNID uint
+	err := txn.QueryRowContext(
+		ctx, "SELECT room_id FROM paginationapi_rooms WHERE room_id = $1", event.RoomID(),
+	).Scan(&roomNID)
+
+	if err != nil {
+		return err
+	}
+
+	var newBucketID uint
+	err = txn.QueryRowContext(
+		ctx, "INSERT INTO paginationapi_buckets (room_id) VALUES ($1) RETURNING id",
+		roomNID,
+	).Scan(&newBucketID)
+
+	if err != nil {
+		return err
+	}
+
+	_, err = txn.ExecContext(
+		ctx, "INSERT INTO paginationapi_latest_buckets (room_id, bucket_id) VALUES ($1, $2)",
+		roomNID, newBucketID,
+	)
+
+	return err
+}
diff --git a/src/github.com/matrix-org/dendrite/paginationapi/storage/storage.go b/src/github.com/matrix-org/dendrite/paginationapi/storage/storage.go
new file mode 100644
index 00000000..aeb2b4bc
--- /dev/null
+++ b/src/github.com/matrix-org/dendrite/paginationapi/storage/storage.go
@@ -0,0 +1,156 @@
+// Copyright 2017 New Ltd
+//
+// 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 storage
+
+import (
+	"context"
+	"database/sql"
+
+	// Import the postgres database driver.
+	_ "github.com/lib/pq"
+	"github.com/matrix-org/dendrite/common"
+	"github.com/matrix-org/gomatrixserverlib"
+)
+
+// SyncServerDatabase represents a sync server database
+type PaginationAPIDatabase struct {
+	db *sql.DB
+	common.PartitionOffsetStatements
+	eventBuckets eventBucketsStatements
+}
+
+// NewSyncServerDatabase creates a new sync server database
+func NewPaginationAPIDatabase(dataSourceName string) (*PaginationAPIDatabase, error) {
+	var d PaginationAPIDatabase
+	var err error
+	if d.db, err = sql.Open("postgres", dataSourceName); err != nil {
+		return nil, err
+	}
+	if err = d.PartitionOffsetStatements.Prepare(d.db, "paginationapi"); err != nil {
+		return nil, err
+	}
+	if err = d.eventBuckets.prepare(d.db); err != nil {
+		return nil, err
+	}
+	return &d, nil
+}
+
+func (s *PaginationAPIDatabase) Paginate(ctx context.Context, eventID string, limit uint) ([]string, error) {
+	return nil, nil
+}
+
+func (s *PaginationAPIDatabase) AddEvent(ctx context.Context, event *gomatrixserverlib.Event) error {
+	// 1. figure out which buckets have events that point to that event (take
+	//    smallest), otherwise look at buckets that prev_events are in
+	// 2. find the largest bucket.
+	// 3. what if one of the prev_events don't have buckets? Add to current
+	//    bucket or not? should we have sentinel events? What if we can't get a
+	//    sentinel? I guess we just ignore that edge.
+	// 4. Check if the bucket is too big, if it is make a new one.
+	// 5. Add event to bucket.
+
+	// TODO: Handle having multiple latest events?
+
+	return common.WithTransaction(s.db, func(txn *sql.Tx) error {
+		eventID := event.EventID()
+
+		minParentBucketID, err := s.eventBuckets.getEarliestBucketForEvent(ctx, txn, eventID)
+		if err != nil {
+			return err
+		}
+
+		maxChildBucketID, err := s.eventBuckets.getLatestBucketForEvents(ctx, txn, event.PrevEventIDs())
+		if err != nil {
+			return err
+		}
+
+		maxCurrentBucketID, err := s.eventBuckets.getLatestBucketID(ctx, txn, event.RoomID())
+		if err != nil {
+			return err
+		}
+
+		result := CalculateEventInsertion(minParentBucketID, maxChildBucketID, maxCurrentBucketID, true)
+
+		switch result.Behaviour {
+		case AppendAfter:
+			return s.eventBuckets.insertAfterBucket(ctx, txn, event, result.BucketID)
+		case AppendInto:
+			return s.eventBuckets.insertIntoOrAfterBucket(ctx, txn, event, result.BucketID)
+		case PrependInto:
+			return s.eventBuckets.insertIntoOrBeforeBucket(ctx, txn, event, result.BucketID)
+		case CreateNew:
+			return s.eventBuckets.createBucketAndInsert(ctx, txn, event)
+		case Quarantine:
+			panic("Quarantine not implemented")
+		default:
+			panic("Unknown behaviour")
+		}
+	})
+}
+
+type EventInsertionBehaviour = uint
+
+const (
+	AppendAfter EventInsertionBehaviour = iota
+	AppendInto
+	PrependInto
+	CreateNew
+	Quarantine
+)
+
+type EventInsertionOutput struct {
+	Behaviour EventInsertionBehaviour
+	BucketID  uint
+}
+
+func CalculateEventInsertion(
+	minParentBucketID *uint,
+	maxChildBucketID *uint,
+	maxCurrentBucketID *uint,
+	isNewEvent bool,
+) EventInsertionOutput {
+	if maxCurrentBucketID == nil {
+		return EventInsertionOutput{
+			Behaviour: CreateNew,
+		}
+	}
+
+	// TODO: Handle if both minParentBucketID and maxChildBucketID are non-nil
+
+	if minParentBucketID != nil {
+		return EventInsertionOutput{
+			BucketID:  *minParentBucketID,
+			Behaviour: PrependInto,
+		}
+	}
+
+	if maxChildBucketID != nil && *maxCurrentBucketID == *maxChildBucketID {
+		return EventInsertionOutput{
+			BucketID:  *maxChildBucketID,
+			Behaviour: AppendInto,
+		}
+	}
+
+	if isNewEvent {
+		return EventInsertionOutput{
+			BucketID:  *maxCurrentBucketID,
+			Behaviour: AppendAfter,
+		}
+	}
+
+	return EventInsertionOutput{
+		Behaviour: Quarantine,
+	}
+}