diff --git a/app/models/label.rb b/app/models/label.rb
new file mode 100644
index 0000000000000000000000000000000000000000..17f293b698fce54c6106b718ac3eae1ef75588ac
--- /dev/null
+++ b/app/models/label.rb
@@ -0,0 +1,7 @@
+class Label < ActiveRecord::Base
+  belongs_to :project
+  has_many :label_links, dependent: :destroy
+
+  validates :color, format: { with: /\A\#[0-9A-Fa-f]{3}{1,2}+\Z/ }, allow_blank: true
+  validates :project, presence: true
+end
diff --git a/app/models/label_link.rb b/app/models/label_link.rb
new file mode 100644
index 0000000000000000000000000000000000000000..47bd6eaf35f91d3570bf053e0c8bb38fce0c4ce8
--- /dev/null
+++ b/app/models/label_link.rb
@@ -0,0 +1,7 @@
+class LabelLink < ActiveRecord::Base
+  belongs_to :target, polymorphic: true
+  belongs_to :label
+
+  validates :target, presence: true
+  validates :label, presence: true
+end
diff --git a/db/migrate/20140729134820_create_labels.rb b/db/migrate/20140729134820_create_labels.rb
new file mode 100644
index 0000000000000000000000000000000000000000..3a4b6a152dc2f9a1c61401336692073b66d54376
--- /dev/null
+++ b/db/migrate/20140729134820_create_labels.rb
@@ -0,0 +1,11 @@
+class CreateLabels < ActiveRecord::Migration
+  def change
+    create_table :labels do |t|
+      t.string :title
+      t.string :color
+      t.integer :project_id
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/migrate/20140729140420_create_label_links.rb b/db/migrate/20140729140420_create_label_links.rb
new file mode 100644
index 0000000000000000000000000000000000000000..2bfc4ae2094628d0d507d41824501183ed92ebfa
--- /dev/null
+++ b/db/migrate/20140729140420_create_label_links.rb
@@ -0,0 +1,11 @@
+class CreateLabelLinks < ActiveRecord::Migration
+  def change
+    create_table :label_links do |t|
+      t.integer :label_id
+      t.integer :target_id
+      t.string :target_type
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index e4dcdf5bea2b6d554e7b9eba64ab4b7aeecf1210..7ab7982feab13924c9ae01b806d00c492616c0c7 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20140625115202) do
+ActiveRecord::Schema.define(version: 20140729140420) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "plpgsql"
@@ -109,6 +109,22 @@
 
   add_index "keys", ["user_id"], name: "index_keys_on_user_id", using: :btree
 
+  create_table "label_links", force: true do |t|
+    t.integer  "label_id"
+    t.integer  "target_id"
+    t.string   "target_type"
+    t.datetime "created_at"
+    t.datetime "updated_at"
+  end
+
+  create_table "labels", force: true do |t|
+    t.string   "title"
+    t.string   "color"
+    t.integer  "project_id"
+    t.datetime "created_at"
+    t.datetime "updated_at"
+  end
+
   create_table "merge_request_diffs", force: true do |t|
     t.string   "state"
     t.text     "st_commits"
diff --git a/spec/factories/label_links.rb b/spec/factories/label_links.rb
new file mode 100644
index 0000000000000000000000000000000000000000..d6b6f8581f69d9fc8dddeb450cd4cdcc1122df02
--- /dev/null
+++ b/spec/factories/label_links.rb
@@ -0,0 +1,8 @@
+# Read about factories at https://github.com/thoughtbot/factory_girl
+
+FactoryGirl.define do
+  factory :label_link do
+    label
+    target factory: :issue
+  end
+end
diff --git a/spec/factories/labels.rb b/spec/factories/labels.rb
new file mode 100644
index 0000000000000000000000000000000000000000..af9f3efa641085c94f1749759d2ac18dd558db53
--- /dev/null
+++ b/spec/factories/labels.rb
@@ -0,0 +1,9 @@
+# Read about factories at https://github.com/thoughtbot/factory_girl
+
+FactoryGirl.define do
+  factory :label do
+    title "Bug"
+    color "#990000"
+    project
+  end
+end
diff --git a/spec/models/label_link_spec.rb b/spec/models/label_link_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..078e61a7d62726a833333d9df8cf99eb68da62b5
--- /dev/null
+++ b/spec/models/label_link_spec.rb
@@ -0,0 +1,9 @@
+require 'spec_helper'
+
+describe LabelLink do
+  let(:label) { create(:label_link) }
+  it { label.should be_valid }
+
+  it { should belong_to(:label) }
+  it { should belong_to(:target) }
+end
diff --git a/spec/models/label_spec.rb b/spec/models/label_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..5098af84cc31e2983994b0b083490802c4fc402b
--- /dev/null
+++ b/spec/models/label_spec.rb
@@ -0,0 +1,8 @@
+require 'spec_helper'
+
+describe Label do
+  let(:label) { create(:label) }
+  it { label.should be_valid }
+
+  it { should belong_to(:project) }
+end