diff --git a/src/powershell/Private/New-ResourceGroup.ps1 b/src/powershell/Private/New-ResourceGroup.ps1
new file mode 100644
index 000000000..11254e299
--- /dev/null
+++ b/src/powershell/Private/New-ResourceGroup.ps1
@@ -0,0 +1,43 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+<#
+    .SYNOPSIS
+    Creates a new resource group.
+
+    .EXAMPLE
+    New-ResourceGroup -WhatIf
+
+    Shows what would happen if the command runs without actually running it.
+
+    .DESCRIPTION
+    The New-ResourceGroup command performs any initialization tasks required for a resource group contributor to be able to deploy a FinOps hub instance in Azure, like registering resource providers. To view the full list of tasks performed, run the command with the -WhatIf option.
+#>
+function New-ResourceGroup
+{
+    [Diagnostics.CodeAnalysis.SuppressMessageAttribute("PSUseShouldProcessForStateChangingFunctions", "")]
+    [CmdletBinding(SupportsShouldProcess)]
+    param
+    (
+        [Parameter(Mandatory = $true)]
+        [string]
+        $Name,
+
+        [Parameter(Mandatory = $true)]
+        [string]
+        $Location,
+
+        [Parameter()]
+        [hashtable]
+        $Tags
+    )
+
+    $resourceGroupObject = Get-AzResourceGroup -Name $Name -ErrorAction 'SilentlyContinue'
+    if (-not $resourceGroupObject)
+    {
+        if (Test-ShouldProcess $PSCmdlet $Name 'CreateResourceGroup')
+        {
+            $resourceGroupObject = New-AzResourceGroup -Name $Name -Location $Location -Tags $Tags
+        }
+    }
+}
diff --git a/src/powershell/Public/Deploy-FinOpsHub.ps1 b/src/powershell/Public/Deploy-FinOpsHub.ps1
index 0d67d9714..064ca5164 100644
--- a/src/powershell/Public/Deploy-FinOpsHub.ps1
+++ b/src/powershell/Public/Deploy-FinOpsHub.ps1
@@ -82,14 +82,7 @@ function Deploy-FinOpsHub
 
     try
     {
-        $resourceGroupObject = Get-AzResourceGroup -Name $ResourceGroupName -ErrorAction 'SilentlyContinue'
-        if (-not $resourceGroupObject)
-        {
-            if (Test-ShouldProcess $PSCmdlet $ResourceGroupName 'CreateResourceGroup')
-            {
-                $resourceGroupObject = New-AzResourceGroup -Name $ResourceGroupName -Location $Location
-            }
-        }
+        New-ResourceGroup -Name $ResourceGroupName -Location $Location -Tags $Tags -WhatIf:$WhatIfPreference
 
         $toolkitPath = Join-Path $env:temp -ChildPath 'FinOpsToolkit'
         if (Test-ShouldProcess $PSCmdlet $toolkitPath 'CreateTempDirectory')
diff --git a/src/powershell/Tests/Unit/Deploy-FinOpsHub.Tests.ps1 b/src/powershell/Tests/Unit/Deploy-FinOpsHub.Tests.ps1
index 593e72608..60223b639 100644
--- a/src/powershell/Tests/Unit/Deploy-FinOpsHub.Tests.ps1
+++ b/src/powershell/Tests/Unit/Deploy-FinOpsHub.Tests.ps1
@@ -38,36 +38,6 @@ InModuleScope 'FinOpsToolkit' {
             }
         }
 
-        Context 'Resource groups' {
-            It 'Should create RG if it does not exist' {
-                # Arrange
-                Mock -CommandName 'Get-AzResourceGroup' -MockWith { return $null }
-                Mock -CommandName 'New-AzResourceGroup' -MockWith { }
-                Mock -CommandName 'Test-ShouldProcess' -MockWith { return $Action -eq 'CreateResourceGroup' }
-
-                # Act
-                Deploy-FinOpsHub -Name $hubName -ResourceGroup $rgName -Location $location
-
-                # Assert
-                Assert-MockCalled -CommandName 'Get-AzResourceGroup' -Times 1
-                Assert-MockCalled -CommandName 'New-AzResourceGroup' -Times 1
-            }
-
-            It 'Should use RG if it exists' {
-                # Arrange
-                Mock -CommandName 'Get-AzResourceGroup' -MockWith { return $rgName }
-                Mock -CommandName 'New-AzResourceGroup' -MockWith { }
-                Mock -CommandName 'Test-ShouldProcess' -MockWith { return $Action -eq 'CreateResourceGroup' }
-
-                # Act
-                Deploy-FinOpsHub -Name $hubName -ResourceGroup $rgName -Location $location
-
-                # Assert
-                Assert-MockCalled -CommandName 'Get-AzResourceGroup' -Times 1
-                Assert-MockCalled -CommandName 'New-AzResourceGroup' -Times 0
-            }
-        }
-
         Context 'Initialize' {
             It 'Should call Initialize-FinOpsHubDeployment' {
                 # Arrange
diff --git a/src/powershell/Tests/Unit/New-ResourceGroup.Tests.ps1 b/src/powershell/Tests/Unit/New-ResourceGroup.Tests.ps1
new file mode 100644
index 000000000..f193348fd
--- /dev/null
+++ b/src/powershell/Tests/Unit/New-ResourceGroup.Tests.ps1
@@ -0,0 +1,67 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+& "$PSScriptRoot/../Initialize-Tests.ps1"
+
+InModuleScope 'FinOpsToolkit' {
+    Describe 'New-ResourceGroup' {
+        BeforeAll {
+            function Get-AzResourceGroup {}
+            function New-AzResourceGroup {}
+            
+            [Diagnostics.CodeAnalysis.SuppressMessageAttribute("PSUseDeclaredVarsMoreThanAssignments", "")]
+            $rgName = 'ftk-test'
+            
+            [Diagnostics.CodeAnalysis.SuppressMessageAttribute("PSUseDeclaredVarsMoreThanAssignments", "")]
+            $location = 'eastus'
+            
+            [Diagnostics.CodeAnalysis.SuppressMessageAttribute("PSUseDeclaredVarsMoreThanAssignments", "")]
+            $tags = @{ Foo = 'Bar' }
+        }
+
+        Context "WhatIf" {
+            It 'Should run without error' {
+                # Arrange
+                Mock -CommandName 'Test-ShouldProcess' { return $false }
+                Mock -CommandName 'Get-AzResourceGroup' { return $null }
+
+                # Act
+                New-ResourceGroup -WhatIf -Name $rgName -Location $location -Tags $tags
+            
+                # Assert
+                Assert-MockCalled -CommandName 'Get-AzResourceGroup' -Times 1
+                Assert-MockCalled -CommandName 'Test-ShouldProcess' -Times 1 -ParameterFilter { $Action -eq 'CreateResourceGroup' }
+            }
+        }
+
+        Context 'Resource groups' {
+            It 'Should create RG if it does not exist' {
+                # Arrange
+                Mock -CommandName 'Get-AzResourceGroup' -MockWith { return $null }
+                Mock -CommandName 'New-AzResourceGroup' -MockWith { }
+                Mock -CommandName 'Test-ShouldProcess' -MockWith { return $Action -eq 'CreateResourceGroup' }
+
+                # Act
+                New-ResourceGroup -Name $rgName -Location $location -Tags $tags
+
+                # Assert
+                Assert-MockCalled -CommandName 'Get-AzResourceGroup' -Times 1
+                Assert-MockCalled -CommandName 'New-AzResourceGroup' -Times 1
+            }
+
+            It 'Should use RG if it exists' {
+                # Arrange
+                Mock -CommandName 'Get-AzResourceGroup' -MockWith { return $rgName }
+                Mock -CommandName 'New-AzResourceGroup' -MockWith { }
+                Mock -CommandName 'Test-ShouldProcess' -MockWith { return $Action -eq 'CreateResourceGroup' }
+
+                # Act
+                New-ResourceGroup -Name $hubName -ResourceGroup $rgName -Location $location
+
+                # Assert
+                Assert-MockCalled -CommandName 'Get-AzResourceGroup' -Times 1
+                Assert-MockCalled -CommandName 'New-AzResourceGroup' -Times 0
+            }
+        }
+    }
+}
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