diff --git a/zerver/actions/user_groups.py b/zerver/actions/user_groups.py
index 283fdf4308..8f59c0f724 100644
--- a/zerver/actions/user_groups.py
+++ b/zerver/actions/user_groups.py
@@ -7,7 +7,7 @@ from django.utils.timezone import now as timezone_now
 from django.utils.translation import gettext as _
 
 from zerver.lib.exceptions import JsonableError
-from zerver.lib.user_groups import access_user_group_by_id, create_user_group
+from zerver.lib.user_groups import access_user_group_by_id
 from zerver.models import (
     GroupGroupMembership,
     Realm,
@@ -25,6 +25,25 @@ class MemberGroupUserDict(TypedDict):
     date_joined: datetime.datetime
 
 
+@transaction.atomic
+def create_user_group(
+    name: str,
+    members: List[UserProfile],
+    realm: Realm,
+    *,
+    acting_user: Optional[UserProfile],
+    description: str = "",
+    is_system_group: bool = False,
+) -> UserGroup:
+    user_group = UserGroup.objects.create(
+        name=name, realm=realm, description=description, is_system_group=is_system_group
+    )
+    UserGroupMembership.objects.bulk_create(
+        UserGroupMembership(user_profile=member, user_group=user_group) for member in members
+    )
+    return user_group
+
+
 @transaction.atomic(savepoint=False)
 def update_users_in_full_members_system_group(
     realm: Realm, affected_user_ids: Sequence[int] = [], *, acting_user: Optional[UserProfile]
diff --git a/zerver/lib/user_groups.py b/zerver/lib/user_groups.py
index 1d2810a361..e347e36ffe 100644
--- a/zerver/lib/user_groups.py
+++ b/zerver/lib/user_groups.py
@@ -1,6 +1,5 @@
-from typing import Dict, Iterable, List, Optional, Sequence, TypedDict
+from typing import Dict, Iterable, List, Sequence, TypedDict
 
-from django.db import transaction
 from django.db.models import QuerySet
 from django.utils.translation import gettext as _
 from django_cte import With
@@ -126,25 +125,6 @@ def get_direct_user_groups(user_profile: UserProfile) -> List[UserGroup]:
     return list(user_profile.direct_groups.all())
 
 
-def create_user_group(
-    name: str,
-    members: List[UserProfile],
-    realm: Realm,
-    *,
-    acting_user: Optional[UserProfile],
-    description: str = "",
-    is_system_group: bool = False,
-) -> UserGroup:
-    with transaction.atomic():
-        user_group = UserGroup.objects.create(
-            name=name, realm=realm, description=description, is_system_group=is_system_group
-        )
-        UserGroupMembership.objects.bulk_create(
-            UserGroupMembership(user_profile=member, user_group=user_group) for member in members
-        )
-        return user_group
-
-
 def get_user_group_direct_member_ids(
     user_group: UserGroup,
 ) -> ValuesQuerySet[UserGroupMembership, int]:
diff --git a/zerver/tests/test_email_notifications.py b/zerver/tests/test_email_notifications.py
index d845edebeb..88da90b05c 100644
--- a/zerver/tests/test_email_notifications.py
+++ b/zerver/tests/test_email_notifications.py
@@ -18,6 +18,7 @@ from django.utils.timezone import now as timezone_now
 from django_auth_ldap.config import LDAPSearch
 
 from zerver.actions.create_user import do_create_user
+from zerver.actions.user_groups import create_user_group
 from zerver.actions.user_settings import do_change_user_setting
 from zerver.actions.users import do_change_user_role
 from zerver.lib.email_notifications import (
@@ -31,7 +32,6 @@ from zerver.lib.email_notifications import (
 )
 from zerver.lib.send_email import FromAddress, deliver_scheduled_emails, send_custom_email
 from zerver.lib.test_classes import ZulipTestCase
-from zerver.lib.user_groups import create_user_group
 from zerver.models import ScheduledEmail, UserMessage, UserProfile, get_realm, get_stream
 
 
diff --git a/zerver/tests/test_event_queue.py b/zerver/tests/test_event_queue.py
index 89b69a7909..7bdb710526 100644
--- a/zerver/tests/test_event_queue.py
+++ b/zerver/tests/test_event_queue.py
@@ -8,12 +8,12 @@ from django.http import HttpRequest, HttpResponse
 from zerver.actions.message_send import internal_send_private_message
 from zerver.actions.muted_users import do_mute_user
 from zerver.actions.streams import do_change_subscription_property
+from zerver.actions.user_groups import create_user_group
 from zerver.actions.user_settings import do_change_user_setting
 from zerver.actions.user_topics import do_set_user_topic_visibility_policy
 from zerver.lib.cache import cache_delete, get_muting_users_cache_key
 from zerver.lib.test_classes import ZulipTestCase
 from zerver.lib.test_helpers import HostRequestMock, dummy_handler, mock_queue_publish
-from zerver.lib.user_groups import create_user_group
 from zerver.models import Recipient, Subscription, UserProfile, UserTopic, get_stream
 from zerver.tornado.event_queue import (
     ClientDescriptor,
diff --git a/zerver/tests/test_events.py b/zerver/tests/test_events.py
index 26a44f28c3..9d71e7b4bd 100644
--- a/zerver/tests/test_events.py
+++ b/zerver/tests/test_events.py
@@ -94,6 +94,7 @@ from zerver.actions.user_groups import (
     bulk_add_members_to_user_group,
     check_add_user_group,
     check_delete_user_group,
+    create_user_group,
     do_update_user_group_description,
     do_update_user_group_name,
     remove_members_from_user_group,
@@ -200,7 +201,6 @@ from zerver.lib.test_helpers import (
 )
 from zerver.lib.topic import TOPIC_NAME
 from zerver.lib.types import ProfileDataElementUpdateDict
-from zerver.lib.user_groups import create_user_group
 from zerver.models import (
     Attachment,
     CustomProfileField,
diff --git a/zerver/tests/test_markdown.py b/zerver/tests/test_markdown.py
index 23637eeab0..ef46fa09b6 100644
--- a/zerver/tests/test_markdown.py
+++ b/zerver/tests/test_markdown.py
@@ -16,6 +16,7 @@ from zerver.actions.alert_words import do_add_alert_words
 from zerver.actions.create_realm import do_create_realm
 from zerver.actions.realm_emoji import do_remove_realm_emoji
 from zerver.actions.realm_settings import do_set_realm_property
+from zerver.actions.user_groups import create_user_group
 from zerver.actions.user_settings import do_change_user_setting
 from zerver.actions.users import change_user_is_active
 from zerver.lib.alert_words import get_alert_word_automaton
@@ -52,7 +53,6 @@ from zerver.lib.mention import (
 from zerver.lib.message import render_markdown
 from zerver.lib.test_classes import ZulipTestCase
 from zerver.lib.tex import render_tex
-from zerver.lib.user_groups import create_user_group
 from zerver.models import (
     Message,
     RealmEmoji,
diff --git a/zerver/tests/test_notification_data.py b/zerver/tests/test_notification_data.py
index f529ab0d01..2760256189 100644
--- a/zerver/tests/test_notification_data.py
+++ b/zerver/tests/test_notification_data.py
@@ -1,7 +1,7 @@
+from zerver.actions.user_groups import create_user_group
 from zerver.lib.mention import MentionBackend, MentionData
 from zerver.lib.notification_data import UserMessageNotificationsData, get_user_group_mentions_data
 from zerver.lib.test_classes import ZulipTestCase
-from zerver.lib.user_groups import create_user_group
 
 
 class TestNotificationData(ZulipTestCase):
diff --git a/zerver/tests/test_push_notifications.py b/zerver/tests/test_push_notifications.py
index bf1e8cb1ec..3d4b781c56 100644
--- a/zerver/tests/test_push_notifications.py
+++ b/zerver/tests/test_push_notifications.py
@@ -25,6 +25,7 @@ from analytics.lib.counts import CountStat, LoggingCountStat
 from analytics.models import InstallationCount, RealmCount
 from zerver.actions.message_delete import do_delete_messages
 from zerver.actions.message_flags import do_mark_stream_messages_as_read, do_update_message_flags
+from zerver.actions.user_groups import create_user_group
 from zerver.actions.user_settings import do_regenerate_api_key
 from zerver.lib.avatar import absolute_avatar_url
 from zerver.lib.exceptions import JsonableError
@@ -60,7 +61,6 @@ from zerver.lib.soft_deactivation import do_soft_deactivate_users
 from zerver.lib.test_classes import ZulipTestCase
 from zerver.lib.test_helpers import mock_queue_publish
 from zerver.lib.timestamp import datetime_to_timestamp
-from zerver.lib.user_groups import create_user_group
 from zerver.models import (
     Message,
     NotificationTriggers,
diff --git a/zerver/tests/test_subs.py b/zerver/tests/test_subs.py
index 853cf40ecb..7ae5e14805 100644
--- a/zerver/tests/test_subs.py
+++ b/zerver/tests/test_subs.py
@@ -33,7 +33,7 @@ from zerver.actions.streams import (
     do_change_stream_post_policy,
     do_deactivate_stream,
 )
-from zerver.actions.user_groups import add_subgroups_to_user_group
+from zerver.actions.user_groups import add_subgroups_to_user_group, create_user_group
 from zerver.actions.users import do_change_user_role, do_deactivate_user
 from zerver.lib.exceptions import JsonableError
 from zerver.lib.message import UnreadStreamInfo, aggregate_unread_data, get_raw_unread_data
@@ -82,7 +82,6 @@ from zerver.lib.types import (
     NeverSubscribedStreamDict,
     SubscriptionInfo,
 )
-from zerver.lib.user_groups import create_user_group
 from zerver.models import (
     Attachment,
     DefaultStream,
diff --git a/zerver/tests/test_user_groups.py b/zerver/tests/test_user_groups.py
index ae72234d0b..9dc00448fe 100644
--- a/zerver/tests/test_user_groups.py
+++ b/zerver/tests/test_user_groups.py
@@ -6,12 +6,11 @@ import orjson
 from django.utils.timezone import now as timezone_now
 
 from zerver.actions.realm_settings import do_set_realm_property
-from zerver.actions.user_groups import promote_new_full_members
+from zerver.actions.user_groups import create_user_group, promote_new_full_members
 from zerver.lib.streams import ensure_stream
 from zerver.lib.test_classes import ZulipTestCase
 from zerver.lib.test_helpers import most_recent_usermessage
 from zerver.lib.user_groups import (
-    create_user_group,
     get_direct_memberships_of_users,
     get_direct_user_groups,
     get_recursive_group_members,
diff --git a/zilencer/management/commands/populate_db.py b/zilencer/management/commands/populate_db.py
index 6b8c1d9269..b45c5417a5 100644
--- a/zilencer/management/commands/populate_db.py
+++ b/zilencer/management/commands/populate_db.py
@@ -27,6 +27,7 @@ from zerver.actions.custom_profile_fields import (
 from zerver.actions.message_send import build_message_send_dict, do_send_messages
 from zerver.actions.realm_emoji import check_add_realm_emoji
 from zerver.actions.streams import bulk_add_subscriptions
+from zerver.actions.user_groups import create_user_group
 from zerver.actions.users import do_change_user_role
 from zerver.lib.bulk_create import bulk_create_streams
 from zerver.lib.generate_test_data import create_test_data, generate_topics
@@ -36,7 +37,6 @@ from zerver.lib.server_initialization import create_internal_realm, create_users
 from zerver.lib.storage import static_path
 from zerver.lib.stream_color import STREAM_ASSIGNMENT_COLORS
 from zerver.lib.types import ProfileFieldData
-from zerver.lib.user_groups import create_user_group
 from zerver.lib.users import add_service
 from zerver.lib.utils import generate_api_key
 from zerver.models import (