diff --git a/client/web/wasm/src/wrappers.rs b/client/web/wasm/src/wrappers.rs
index e018bb78..332fcd1a 100644
--- a/client/web/wasm/src/wrappers.rs
+++ b/client/web/wasm/src/wrappers.rs
@@ -82,6 +82,7 @@ pub fn translate_key(name: &str) -> events::Key {
 		"r" => K::KeyR,
 		"m" => K::KeyM,
 		"x" => K::KeyX,
+		"z" => K::KeyZ,
 		"0" => K::Key0,
 		"1" => K::Key1,
 		"2" => K::Key2,
diff --git a/core/document/src/lib.rs b/core/document/src/lib.rs
index 77e49525..d3093baf 100644
--- a/core/document/src/lib.rs
+++ b/core/document/src/lib.rs
@@ -4,14 +4,16 @@ pub use kurbo::{Circle, Point, Rect};
 pub use operation::Operation;
 
 #[derive(Debug, Clone, PartialEq)]
-pub enum SvgElement {
+pub enum LayerType {
+	Folder(Folder),
 	Circle(Circle),
 	Rect(Rect),
 }
 
-impl SvgElement {
+impl LayerType {
 	pub fn render(&self) -> String {
 		match self {
+			Self::Folder(f) => f.render(),
 			Self::Circle(c) => {
 				format!(r#"<circle cx="{}" cy="{}" r="{}" style="fill: #fff;" />"#, c.center.x, c.center.y, c.radius)
 			}
@@ -22,31 +24,200 @@ impl SvgElement {
 	}
 }
 
-#[derive(Default, Debug, Clone, PartialEq)]
+#[derive(Debug, Clone, Copy, PartialEq)]
+pub enum DocumentError {
+	LayerNotFound,
+	InvalidPath,
+	IndexOutOfBounds,
+}
+
+type LayerId = u64;
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct Layer {
+	visible: bool,
+	name: Option<String>,
+	data: LayerType,
+}
+
+impl Layer {
+	pub fn new(data: LayerType) -> Self {
+		Self { visible: true, name: None, data }
+	}
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct Folder {
+	next_assignment_id: LayerId,
+	layer_ids: Vec<LayerId>,
+	layers: Vec<Layer>,
+}
+
+impl Folder {
+	pub fn render(&self) -> String {
+		self.layers
+			.iter()
+			.filter(|layer| layer.visible)
+			.map(|layer| layer.data.render())
+			.fold(String::with_capacity(self.layers.len() * 30), |s, n| s + "\n" + &n)
+	}
+
+	fn add_layer(&mut self, layer: Layer, insert_index: isize) -> Option<LayerId> {
+		let mut insert_index = insert_index as i128;
+		if insert_index < 0 {
+			insert_index = self.layers.len() as i128 + insert_index as i128 + 1;
+		}
+
+		if insert_index <= self.layers.len() as i128 && insert_index >= 0 {
+			self.layers.insert(insert_index as usize, layer);
+			self.layer_ids.insert(insert_index as usize, self.next_assignment_id);
+			self.next_assignment_id += 1;
+			Some(self.next_assignment_id - 1)
+		} else {
+			None
+		}
+	}
+
+	fn remove_layer(&mut self, id: LayerId) -> Result<(), DocumentError> {
+		let pos = self.layer_ids.iter().position(|x| *x == id).ok_or(DocumentError::LayerNotFound)?;
+		self.layers.remove(pos);
+		self.layer_ids.remove(pos);
+		Ok(())
+	}
+
+	/// Returns a list of layers in the folder
+	pub fn list_layers(&self) -> &[LayerId] {
+		self.layer_ids.as_slice()
+	}
+
+	fn layer(&self, id: LayerId) -> Option<&Layer> {
+		let pos = self.layer_ids.iter().position(|x| *x == id)?;
+		Some(&self.layers[pos])
+	}
+
+	fn layer_mut(&mut self, id: LayerId) -> Option<&mut Layer> {
+		let pos = self.layer_ids.iter().position(|x| *x == id)?;
+		Some(&mut self.layers[pos])
+	}
+
+	fn folder(&self, id: LayerId) -> Option<&Folder> {
+		match self.layer(id) {
+			Some(Layer { data: LayerType::Folder(folder), .. }) => Some(&folder),
+			_ => None,
+		}
+	}
+
+	fn folder_mut(&mut self, id: LayerId) -> Option<&mut Folder> {
+		match self.layer_mut(id) {
+			Some(Layer { data: LayerType::Folder(folder), .. }) => Some(folder),
+			_ => None,
+		}
+	}
+}
+
+impl Default for Folder {
+	fn default() -> Self {
+		Self {
+			layer_ids: vec![],
+			layers: vec![],
+			next_assignment_id: 0,
+		}
+	}
+}
+
+#[derive(Debug, Clone, PartialEq)]
 pub struct Document {
-	pub svg: Vec<SvgElement>,
+	pub root: Folder,
+}
+
+impl Default for Document {
+	fn default() -> Self {
+		Self { root: Folder::default() }
+	}
+}
+
+fn split_path(path: &[LayerId]) -> Result<(&[LayerId], LayerId), DocumentError> {
+	let id = path.last().ok_or(DocumentError::InvalidPath)?;
+	let folder_path = &path[0..path.len() - 1];
+	Ok((folder_path, *id))
 }
 
 impl Document {
 	pub fn render(&self) -> String {
-		self.svg.iter().map(|element| element.render()).collect::<Vec<_>>().join("\n")
+		self.root.render()
 	}
 
-	pub fn handle_operation<F: Fn(String)>(&mut self, operation: &Operation, update_frontend: F) {
-		match *operation {
-			Operation::AddCircle { cx, cy, r } => {
-				self.svg.push(SvgElement::Circle(Circle {
-					center: Point { x: cx, y: cy },
-					radius: r,
-				}));
+	pub fn folder(&self, path: &[LayerId]) -> Result<&Folder, DocumentError> {
+		let mut root = &self.root;
+		for id in path {
+			root = root.folder(*id).ok_or(DocumentError::LayerNotFound)?;
+		}
+		Ok(root)
+	}
 
-				update_frontend(self.render());
-			}
-			Operation::AddRect { x0, y0, x1, y1 } => {
-				self.svg.push(SvgElement::Rect(Rect::from_points(Point::new(x0, y0), Point::new(x1, y1))));
+	pub fn folder_mut(&mut self, path: &[LayerId]) -> Result<&mut Folder, DocumentError> {
+		let mut root = &mut self.root;
+		for id in path {
+			root = root.folder_mut(*id).ok_or(DocumentError::LayerNotFound)?;
+		}
+		Ok(root)
+	}
 
-				update_frontend(self.render());
+	pub fn layer(&self, path: &[LayerId]) -> Result<&Layer, DocumentError> {
+		let (path, id) = split_path(path)?;
+		self.folder(path)?.layer(id).ok_or(DocumentError::LayerNotFound)
+	}
+
+	pub fn layer_mut(&mut self, path: &[LayerId]) -> Result<&mut Layer, DocumentError> {
+		let (path, id) = split_path(path)?;
+		self.folder_mut(path)?.layer_mut(id).ok_or(DocumentError::LayerNotFound)
+	}
+
+	pub fn set_layer(&mut self, path: &[LayerId], layer: Layer) -> Result<(), DocumentError> {
+		let mut folder = &mut self.root;
+		if let Ok((path, id)) = split_path(path) {
+			folder = self.folder_mut(path)?;
+			if let Some(folder_layer) = folder.layer_mut(id) {
+				*folder_layer = layer;
+				return Ok(());
 			}
 		}
+		folder.add_layer(layer, -1).ok_or(DocumentError::IndexOutOfBounds)?;
+		Ok(())
+	}
+
+	/// Passing a negative `insert_index` indexes relative to the end
+	/// -1 is equivalent to adding the layer to the top
+	pub fn add_layer(&mut self, path: &[LayerId], layer: Layer, insert_index: isize) -> Result<LayerId, DocumentError> {
+		let folder = self.folder_mut(path)?;
+		folder.add_layer(layer, insert_index).ok_or(DocumentError::IndexOutOfBounds)
+	}
+
+	pub fn delete(&mut self, path: &[LayerId]) -> Result<(), DocumentError> {
+		let (path, id) = split_path(path)?;
+		self.folder_mut(path)?.remove_layer(id)?;
+		Ok(())
+	}
+
+	pub fn handle_operation<F: Fn(String)>(&mut self, operation: Operation, update_frontend: F) -> Result<(), DocumentError> {
+		match operation {
+			Operation::AddCircle { path, insert_index, cx, cy, r } => {
+				self.add_layer(&path, Layer::new(LayerType::Circle(Circle::new(Point::new(cx, cy), r))), insert_index)?;
+
+				update_frontend(self.render());
+			}
+			Operation::AddRect { path, insert_index, x0, y0, x1, y1 } => {
+				self.add_layer(&path, Layer::new(LayerType::Rect(Rect::from_points(Point::new(x0, y0), Point::new(x1, y1)))), insert_index)?;
+
+				update_frontend(self.render());
+			}
+			Operation::DeleteLayer { path } => {
+				self.delete(&path)?;
+
+				update_frontend(self.render());
+			}
+			Operation::AddFolder { path } => self.set_layer(&path, Layer::new(LayerType::Folder(Folder::default())))?,
+		}
+		Ok(())
 	}
 }
diff --git a/core/document/src/operation.rs b/core/document/src/operation.rs
index 08b5eb23..df1d1fce 100644
--- a/core/document/src/operation.rs
+++ b/core/document/src/operation.rs
@@ -1,4 +1,25 @@
+use crate::LayerId;
+
 pub enum Operation {
-	AddCircle { cx: f64, cy: f64, r: f64 },
-	AddRect { x0: f64, y0: f64, x1: f64, y1: f64 },
+	AddCircle {
+		path: Vec<LayerId>,
+		insert_index: isize,
+		cx: f64,
+		cy: f64,
+		r: f64,
+	},
+	AddRect {
+		path: Vec<LayerId>,
+		insert_index: isize,
+		x0: f64,
+		y0: f64,
+		x1: f64,
+		y1: f64,
+	},
+	DeleteLayer {
+		path: Vec<LayerId>,
+	},
+	AddFolder {
+		path: Vec<LayerId>,
+	},
 }
diff --git a/core/editor/src/dispatcher/events.rs b/core/editor/src/dispatcher/events.rs
index 764cf79c..fb6501c6 100644
--- a/core/editor/src/dispatcher/events.rs
+++ b/core/editor/src/dispatcher/events.rs
@@ -113,6 +113,7 @@ pub enum Key {
 	KeyE,
 	KeyV,
 	KeyX,
+	KeyZ,
 	Key0,
 	Key1,
 	Key2,
diff --git a/core/editor/src/dispatcher/mod.rs b/core/editor/src/dispatcher/mod.rs
index 0c430d7f..e342db17 100644
--- a/core/editor/src/dispatcher/mod.rs
+++ b/core/editor/src/dispatcher/mod.rs
@@ -85,28 +85,28 @@ impl Dispatcher {
 
 		let (responses, operations) = editor_state.tool_state.active_tool()?.handle_input(event, &editor_state.document);
 
-		self.dispatch_operations(&mut editor_state.document, &operations);
+		self.dispatch_operations(&mut editor_state.document, operations);
 		// TODO - Dispatch Responses
 
 		Ok(())
 	}
 
-	fn dispatch_operations(&self, document: &mut Document, operations: &[Operation]) {
+	fn dispatch_operations<I: IntoIterator<Item = Operation>>(&self, document: &mut Document, operations: I) {
 		for operation in operations {
-			self.dispatch_operation(document, operation);
+			if let Err(error) = self.dispatch_operation(document, operation) {
+				log::error!("{}", error);
+			}
 		}
 	}
 
-	fn dispatch_operation(&self, document: &mut Document, operation: &Operation) {
-		document.handle_operation(operation, |svg: String| {
-			self.dispatch_response(Response::UpdateCanvas { document: svg });
-		});
+	fn dispatch_operation(&self, document: &mut Document, operation: Operation) -> Result<(), EditorError> {
+		document.handle_operation(operation, |svg: String| self.dispatch_response(Response::UpdateCanvas { document: svg }))?;
+		Ok(())
 	}
 
-	pub fn dispatch_responses(&self, responses: &[Response]) {
+	pub fn dispatch_responses<I: IntoIterator<Item = Response>>(&self, responses: I) {
 		for response in responses {
-			// TODO - Remove clone when Response is Copy
-			self.dispatch_response(response.clone());
+			self.dispatch_response(response);
 		}
 	}
 
diff --git a/core/editor/src/error.rs b/core/editor/src/error.rs
index 5b355fb9..acf55b62 100644
--- a/core/editor/src/error.rs
+++ b/core/editor/src/error.rs
@@ -1,5 +1,6 @@
 use crate::events::Event;
 use crate::Color;
+use document_core::DocumentError;
 use thiserror::Error;
 
 /// The error type used by the Graphite editor.
@@ -15,6 +16,8 @@ pub enum EditorError {
 	Color(String),
 	#[error("The requested tool does not exist")]
 	UnknownTool,
+	#[error("The operation caused a document error {0:?}")]
+	Document(String),
 }
 
 macro_rules! derive_from {
@@ -31,3 +34,4 @@ derive_from!(&str, Misc);
 derive_from!(String, Misc);
 derive_from!(Color, Color);
 derive_from!(Event, InvalidEvent);
+derive_from!(DocumentError, Document);
diff --git a/core/editor/src/tools/ellipse.rs b/core/editor/src/tools/ellipse.rs
index 915d3370..dab1fb8d 100644
--- a/core/editor/src/tools/ellipse.rs
+++ b/core/editor/src/tools/ellipse.rs
@@ -1,5 +1,5 @@
 use crate::events::{Event, Response};
-use crate::events::{MouseKeys, ViewportPosition};
+use crate::events::{Key, MouseKeys, ViewportPosition};
 use crate::tools::{Fsm, Tool};
 use crate::Document;
 use document_core::Operation;
@@ -45,12 +45,20 @@ impl Fsm for EllipseToolFsmState {
 				data.drag_start = mouse_state.position;
 				EllipseToolFsmState::LmbDown
 			}
+			(EllipseToolFsmState::Ready, Event::KeyDown(Key::KeyZ)) => {
+				if let Some(id) = document.root.list_layers().last() {
+					operations.push(Operation::DeleteLayer { path: vec![*id] })
+				}
+				EllipseToolFsmState::Ready
+			}
 
 			// TODO - Check for left mouse button
 			(EllipseToolFsmState::LmbDown, Event::MouseUp(mouse_state)) => {
 				let r = data.drag_start.distance(&mouse_state.position);
 				log::info!("draw ellipse with radius: {:.2}", r);
 				operations.push(Operation::AddCircle {
+					path: vec![],
+					insert_index: -1,
 					cx: data.drag_start.x as f64,
 					cy: data.drag_start.y as f64,
 					r: data.drag_start.distance(&mouse_state.position),
diff --git a/core/editor/src/tools/rectangle.rs b/core/editor/src/tools/rectangle.rs
index 679030b0..cd27e3db 100644
--- a/core/editor/src/tools/rectangle.rs
+++ b/core/editor/src/tools/rectangle.rs
@@ -1,5 +1,5 @@
 use crate::events::{Event, Response};
-use crate::events::{MouseKeys, ViewportPosition};
+use crate::events::{Key, MouseKeys, ViewportPosition};
 use crate::tools::{Fsm, Tool};
 use crate::Document;
 use document_core::Operation;
@@ -45,6 +45,12 @@ impl Fsm for RectangleToolFsmState {
 				data.drag_start = mouse_state.position;
 				RectangleToolFsmState::LmbDown
 			}
+			(RectangleToolFsmState::Ready, Event::KeyDown(Key::KeyZ)) => {
+				if let Some(id) = document.root.list_layers().last() {
+					operations.push(Operation::DeleteLayer { path: vec![*id] })
+				}
+				RectangleToolFsmState::Ready
+			}
 
 			// TODO - Check for left mouse button
 			(RectangleToolFsmState::LmbDown, Event::MouseUp(mouse_state)) => {
@@ -53,6 +59,8 @@ impl Fsm for RectangleToolFsmState {
 				let start = data.drag_start;
 				let end = mouse_state.position;
 				operations.push(Operation::AddRect {
+					path: vec![],
+					insert_index: -1,
 					x0: start.x as f64,
 					y0: start.y as f64,
 					x1: end.x as f64,