diff --git a/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/rules/GetInheritedRulesTests.java b/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/rules/GetInheritedRulesTests.java
new file mode 100644
index 0000000000..ebe1017b2c
--- /dev/null
+++ b/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/rules/GetInheritedRulesTests.java
@@ -0,0 +1,142 @@
+/*
+ * #%L
+ * Alfresco Repository
+ * %%
+ * Copyright (C) 2005 - 2016 Alfresco Software Limited
+ * %%
+ * This file is part of the Alfresco software.
+ * If the software was purchased under a paid Alfresco license, the terms of
+ * the paid license agreement will prevail.  Otherwise, the software is
+ * provided under the following open source license terms:
+ *
+ * Alfresco is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Lesser General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * Alfresco is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Lesser General Public License for more details.
+ *
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with Alfresco. If not, see <http://www.gnu.org/licenses/>.
+ * #L%
+ */
+package org.alfresco.rest.rules;
+
+import static org.alfresco.rest.rules.RulesTestsUtils.createRuleModelWithModifiedValues;
+import static org.alfresco.utility.report.log.Step.STEP;
+import static org.testng.Assert.assertEquals;
+
+import java.util.List;
+import java.util.stream.Collectors;
+import java.util.stream.IntStream;
+
+import org.alfresco.rest.RestTest;
+import org.alfresco.rest.model.RestRuleModel;
+import org.alfresco.rest.model.RestRuleModelsCollection;
+import org.alfresco.rest.model.RestRuleSetLinkModel;
+import org.alfresco.rest.model.RestRuleSetModel;
+import org.alfresco.rest.model.RestRuleSetModelsCollection;
+import org.alfresco.utility.model.FolderModel;
+import org.alfresco.utility.model.SiteModel;
+import org.alfresco.utility.model.TestGroup;
+import org.alfresco.utility.model.UserModel;
+import org.testng.annotations.BeforeClass;
+import org.testng.annotations.Test;
+
+/**
+ * Tests for GET /nodes/{nodeId}/rule-sets/{ruleSetId}/rules with rule inheritance.
+ */
+@Test(groups = {TestGroup.RULES})
+public class GetInheritedRulesTests extends RestTest
+{
+    private UserModel user;
+    private SiteModel site;
+
+    @BeforeClass(alwaysRun = true)
+    public void dataPreparation()
+    {
+        STEP("Create a user and site");
+        user = dataUser.createRandomTestUser();
+        site = dataSite.usingUser(user).createPublicRandomSite();
+    }
+
+    /**
+     * Check we can get all the rules for the folder by providing the different rule set ids.
+     */
+    @Test (groups = { TestGroup.REST_API, TestGroup.RULES, TestGroup.SANITY })
+    public void getInheritedRules()
+    {
+        STEP("Create a parent and child folder, each with inheriting rules");
+        FolderModel parent = dataContent.usingUser(user).usingSite(site).createFolder();
+        FolderModel child = dataContent.usingUser(user).usingResource(parent).createFolder();
+        RestRuleModel parentRule = createRuleModelWithModifiedValues();
+        parentRule = restClient.authenticateUser(user).withCoreAPI().usingNode(parent).usingDefaultRuleSet().createSingleRule(parentRule);
+        RestRuleModel childRule = createRuleModelWithModifiedValues();
+        childRule = restClient.authenticateUser(user).withCoreAPI().usingNode(child).usingDefaultRuleSet().createSingleRule(childRule);
+
+        STEP("Get the rules in the default rule set for the child folder");
+        RestRuleModelsCollection rules = restClient.authenticateUser(user).withCoreAPI().usingNode(child).usingDefaultRuleSet().getListOfRules();
+        rules.assertThat().entriesListContains("id", childRule.getId())
+             .and().entriesListCountIs(1);
+
+        STEP("Get the rules in the inherited rule set for the child folder");
+        RestRuleSetModelsCollection ruleSets = restClient.authenticateUser(user).withCoreAPI().usingNode(child).include("inclusionType").getListOfRuleSets();
+        String inheritedRuleSetId = ruleSets.getEntries().stream()
+                                            .filter(ruleSet -> ruleSet.onModel().getInclusionType().equals("inherited"))
+                                            .findFirst().get().onModel().getId();
+        RestRuleModelsCollection inheritedRules = restClient.authenticateUser(user).withCoreAPI().usingNode(child).usingRuleSet(inheritedRuleSetId).getListOfRules();
+        inheritedRules.assertThat().entriesListContains("id", parentRule.getId())
+                      .and().entriesListCountIs(1);
+    }
+
+    /**
+     * Check that we only get each rule once with linking and inheritance, and the order is correct.
+     * <p>
+     * The folder structure for this test is as follows:
+     * <pre>
+     *      A --[links]-> DRuleSet
+     *      +-B --[owns]-> BRuleSet
+     *        +-C --[owns]-> CRuleSet
+     *          +-D --[owns]--> DRuleSet
+     * </pre>
+     */
+    @Test (groups = { TestGroup.REST_API, TestGroup.RULES, TestGroup.SANITY })
+    public void rulesReturnedAreUnique()
+    {
+        STEP("Create four folders with rules");
+        FolderModel folderA = dataContent.usingUser(user).usingSite(site).createFolder();
+        FolderModel folderB = dataContent.usingUser(user).usingResource(folderA).createFolder();
+        FolderModel folderC = dataContent.usingUser(user).usingResource(folderB).createFolder();
+        FolderModel folderD = dataContent.usingUser(user).usingResource(folderC).createFolder();
+        RestRuleModel ruleB = restClient.authenticateUser(user).withCoreAPI().usingNode(folderB).usingDefaultRuleSet().createSingleRule(createRuleModelWithModifiedValues());
+        RestRuleModel ruleC = restClient.authenticateUser(user).withCoreAPI().usingNode(folderC).usingDefaultRuleSet().createSingleRule(createRuleModelWithModifiedValues());
+        RestRuleModel ruleD = restClient.authenticateUser(user).withCoreAPI().usingNode(folderD).usingDefaultRuleSet().createSingleRule(createRuleModelWithModifiedValues());
+        STEP("Link folderA to ruleSetD");
+        RestRuleSetLinkModel linkModel = new RestRuleSetLinkModel();
+        linkModel.setId(folderD.getNodeRef());
+        restClient.authenticateUser(user).withCoreAPI().usingNode(folderA).createRuleLink(linkModel);
+
+        STEP("Get the rule sets for the folderD");
+        List<RestRuleSetModel> ruleSets = restClient.authenticateUser(user).withCoreAPI().usingNode(folderD).getListOfRuleSets().getEntries();
+
+        STEP("Check the rules for each rule set are as expected");
+        List<RestRuleModel> expectedRuleIds = List.of(ruleD, ruleB, ruleC);
+        IntStream.range(0, 2).forEach(index -> {
+            String ruleSetId = ruleSets.get(index).onModel().getId();
+            List<RestRuleModel> rules = restClient.authenticateUser(user)
+                                                  .withCoreAPI()
+                                                  .usingNode(folderD)
+                                                  .usingRuleSet(ruleSetId)
+                                                  .getListOfRules()
+                                                  .getEntries()
+                                                  .stream()
+                                                  .map(RestRuleModel::onModel)
+                                                  .collect(Collectors.toList());
+            assertEquals(rules, List.of(expectedRuleIds.get(index)), "Unexpected rules found for rule set " + ruleSetId);
+        });
+        assertEquals(ruleSets.size(), 3, "Expected three unique rule sets to be returned but got " + ruleSets);
+    }
+}
diff --git a/remote-api/src/main/java/org/alfresco/rest/api/impl/rules/RulesImpl.java b/remote-api/src/main/java/org/alfresco/rest/api/impl/rules/RulesImpl.java
index 5f63d37cd7..81efa535e8 100644
--- a/remote-api/src/main/java/org/alfresco/rest/api/impl/rules/RulesImpl.java
+++ b/remote-api/src/main/java/org/alfresco/rest/api/impl/rules/RulesImpl.java
@@ -63,9 +63,10 @@ public class RulesImpl implements Rules
                                                    final Paging paging)
     {
         final NodeRef folderNodeRef = validator.validateFolderNode(folderNodeId, false);
-        validator.validateRuleSetNode(ruleSetId, folderNodeRef);
+        NodeRef ruleSetNode = validator.validateRuleSetNode(ruleSetId, folderNodeRef);
+        NodeRef owningFolder = ruleService.getOwningNodeRef(ruleSetNode);
 
-        final List<Rule> rules = ruleService.getRules(folderNodeRef).stream()
+        final List<Rule> rules = ruleService.getRules(owningFolder, false).stream()
                 .map(ruleModel -> loadRuleAndConvertActionParams(ruleModel, includes))
                 .collect(Collectors.toList());
 
diff --git a/remote-api/src/test/java/org/alfresco/rest/api/impl/rules/RulesImplTest.java b/remote-api/src/test/java/org/alfresco/rest/api/impl/rules/RulesImplTest.java
index f7c4aad7d5..cd6c8b67f4 100644
--- a/remote-api/src/test/java/org/alfresco/rest/api/impl/rules/RulesImplTest.java
+++ b/remote-api/src/test/java/org/alfresco/rest/api/impl/rules/RulesImplTest.java
@@ -115,7 +115,8 @@ public class RulesImplTest extends TestCase
         given(nodeValidatorMock.validateRuleNode(any(), any())).willReturn(RULE_NODE_REF);
 
         given(ruleServiceMock.getRule(RULE_NODE_REF)).willReturn(ruleModel);
-        given(ruleServiceMock.getRules(FOLDER_NODE_REF)).willReturn(List.of(ruleModel));
+        given(ruleServiceMock.getRules(FOLDER_NODE_REF, false)).willReturn(List.of(ruleModel));
+        given(ruleServiceMock.getOwningNodeRef(RULE_SET_NODE_REF)).willReturn(FOLDER_NODE_REF);
 
         given(ruleLoaderMock.loadRule(ruleModel, INCLUDE)).willReturn(ruleMock);
 
@@ -126,13 +127,15 @@ public class RulesImplTest extends TestCase
     public void testGetRules()
     {
         given(ruleLoaderMock.loadRule(ruleModel, emptyList())).willReturn(ruleMock);
+
         // when
         final CollectionWithPagingInfo<Rule> rulesPage = rules.getRules(FOLDER_NODE_ID, RULE_SET_ID, INCLUDE, PAGING);
 
         then(nodeValidatorMock).should().validateFolderNode(FOLDER_NODE_ID, false);
         then(nodeValidatorMock).should().validateRuleSetNode(RULE_SET_ID, FOLDER_NODE_REF);
         then(nodeValidatorMock).shouldHaveNoMoreInteractions();
-        then(ruleServiceMock).should().getRules(FOLDER_NODE_REF);
+        then(ruleServiceMock).should().getOwningNodeRef(RULE_SET_NODE_REF);
+        then(ruleServiceMock).should().getRules(FOLDER_NODE_REF, false);
         then(ruleServiceMock).shouldHaveNoMoreInteractions();
         then(ruleLoaderMock).should().loadRule(ruleModel, emptyList());
         then(ruleLoaderMock).shouldHaveNoMoreInteractions();
@@ -148,12 +151,13 @@ public class RulesImplTest extends TestCase
     @Test
     public void testGetRules_emptyResult()
     {
-        given(ruleServiceMock.getRules(any())).willReturn(emptyList());
+        given(ruleServiceMock.getRules(FOLDER_NODE_REF, false)).willReturn(emptyList());
 
         // when
         final CollectionWithPagingInfo<Rule> rulesPage = rules.getRules(FOLDER_NODE_ID, RULE_SET_ID, INCLUDE, PAGING);
 
-        then(ruleServiceMock).should().getRules(FOLDER_NODE_REF);
+        then(ruleServiceMock).should().getOwningNodeRef(RULE_SET_NODE_REF);
+        then(ruleServiceMock).should().getRules(FOLDER_NODE_REF, false);
         then(ruleServiceMock).shouldHaveNoMoreInteractions();
         assertThat(rulesPage)
                 .isNotNull()
diff --git a/repository/src/main/java/org/alfresco/repo/rule/RuleServiceImpl.java b/repository/src/main/java/org/alfresco/repo/rule/RuleServiceImpl.java
index 646ef4352a..fa92c02204 100644
--- a/repository/src/main/java/org/alfresco/repo/rule/RuleServiceImpl.java
+++ b/repository/src/main/java/org/alfresco/repo/rule/RuleServiceImpl.java
@@ -26,6 +26,7 @@
 package org.alfresco.repo.rule;
 
 import static org.alfresco.repo.rule.RuleModel.ASPECT_IGNORE_INHERITED_RULES;
+import static org.alfresco.repo.rule.RuleModel.ASSOC_RULE_FOLDER;
 
 import java.io.Serializable;
 import java.util.ArrayList;
@@ -35,6 +36,9 @@ import java.util.HashSet;
 import java.util.List;
 import java.util.Map;
 import java.util.Set;
+import java.util.stream.Collectors;
+
+import com.google.common.collect.Sets;
 
 import org.alfresco.model.ContentModel;
 import org.alfresco.repo.action.ActionImpl;
@@ -257,7 +261,7 @@ public class RuleServiceImpl
         policyComponent.bindAssociationBehaviour(
                 NodeServicePolicies.OnCreateChildAssociationPolicy.QNAME,
                 RuleModel.ASPECT_RULES,
-                RuleModel.ASSOC_RULE_FOLDER,
+                ASSOC_RULE_FOLDER,
                 new JavaBehaviour(this, "onCreateChildAssociation"));
         policyComponent.bindClassBehaviour(
                 NodeServicePolicies.OnAddAspectPolicy.QNAME,
@@ -349,8 +353,8 @@ public class RuleServiceImpl
         
         List<ChildAssociationRef> assocs = this.runtimeNodeService.getChildAssocs(
                 nodeRef,
-                RuleModel.ASSOC_RULE_FOLDER,
-                RuleModel.ASSOC_RULE_FOLDER);
+                ASSOC_RULE_FOLDER,
+                ASSOC_RULE_FOLDER);
         if (assocs.size() > 1)
         {
             throw new ActionServiceException("There is more than one rule folder, which is invalid.");
@@ -1568,6 +1572,12 @@ public class RuleServiceImpl
         return this.nodeService.getPrimaryParent(systemFolder).getParentRef();
     }
 
+    @Override
+    public NodeRef getOwningNodeRef(NodeRef ruleSet)
+    {
+        return nodeService.getPrimaryParent(ruleSet).getParentRef();
+    }
+
     @Override
     public NodeRef getOwningNodeRef(final Action action)
     {
@@ -1660,7 +1670,7 @@ public class RuleServiceImpl
     @Experimental
     public NodeRef getRuleSetNode(final NodeRef folderNodeRef)
     {
-        return runtimeNodeService.getChildAssocs(folderNodeRef, RuleModel.ASSOC_RULE_FOLDER, RuleModel.ASSOC_RULE_FOLDER).stream()
+        return runtimeNodeService.getChildAssocs(folderNodeRef, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER).stream()
             .map(ChildAssociationRef::getChildRef)
             .findFirst()
             .orElse(null);
@@ -1670,7 +1680,10 @@ public class RuleServiceImpl
     @Experimental
     public boolean isRuleSetAssociatedWithFolder(final NodeRef ruleSetNodeRef, final NodeRef folderNodeRef)
     {
-        return isChildOf(ruleSetNodeRef, RuleModel.ASSOC_RULE_FOLDER, folderNodeRef);
+        List<ChildAssociationRef> associations = runtimeNodeService.getParentAssocs(ruleSetNodeRef, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER);
+        Set<NodeRef> associatedFolders = associations.stream().map(ChildAssociationRef::getParentRef).collect(Collectors.toSet());
+        Set<NodeRef> supplyingFolders = new HashSet<>(getNodesSupplyingRuleSets(folderNodeRef));
+        return !Sets.intersection(associatedFolders, supplyingFolders).isEmpty();
     }
 
     @Override
diff --git a/repository/src/main/java/org/alfresco/service/cmr/rule/RuleService.java b/repository/src/main/java/org/alfresco/service/cmr/rule/RuleService.java
index 6434dfc07b..03a82e80df 100644
--- a/repository/src/main/java/org/alfresco/service/cmr/rule/RuleService.java
+++ b/repository/src/main/java/org/alfresco/service/cmr/rule/RuleService.java
@@ -311,7 +311,17 @@ public interface RuleService
      */
     @Auditable(parameters = {"action"})
     public NodeRef getOwningNodeRef(Action action);
-    
+
+    /**
+     * Returns the owning node reference for a rule.
+     *
+     * @param ruleSet The rule set node.
+     * @return the owning node reference
+     */
+    @Auditable (parameters = { "ruleSet" })
+    @Experimental
+    NodeRef getOwningNodeRef(NodeRef ruleSet);
+
     /**
      * Indicates whether the passed rule node reference is linked to another
      * rule node.
@@ -353,7 +363,7 @@ public interface RuleService
     NodeRef getRuleSetNode(final NodeRef folderNodeRef);
 
     /**
-     * Check if rule set's associated parent matches folder node.
+     * Check if rule set is associated (owned/linked/inherited) with the given folder node.
      *
      * @param ruleSetNodeRef - node reference of a rule set
      * @param folderNodeRef - node reference of a folder
diff --git a/repository/src/test/java/org/alfresco/repo/rule/RuleServiceImplUnitTest.java b/repository/src/test/java/org/alfresco/repo/rule/RuleServiceImplUnitTest.java
index 868f355506..11f7caebc2 100644
--- a/repository/src/test/java/org/alfresco/repo/rule/RuleServiceImplUnitTest.java
+++ b/repository/src/test/java/org/alfresco/repo/rule/RuleServiceImplUnitTest.java
@@ -254,6 +254,8 @@ public class RuleServiceImplUnitTest
         boolean associated = ruleService.isRuleSetAssociatedWithFolder(RULE_SET_NODE, FOLDER_NODE);
 
         then(runtimeNodeService).should().getParentAssocs(RULE_SET_NODE, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER);
+        then(runtimeNodeService).should().hasAspect(FOLDER_NODE, ASPECT_IGNORE_INHERITED_RULES);
+        then(runtimeNodeService).should().getParentAssocs(FOLDER_NODE);
         then(runtimeNodeService).shouldHaveNoMoreInteractions();
         then(nodeService).shouldHaveNoInteractions();
         assertThat(associated).isTrue();
@@ -268,6 +270,8 @@ public class RuleServiceImplUnitTest
         boolean associated = ruleService.isRuleSetAssociatedWithFolder(RULE_SET_NODE, FOLDER_NODE);
 
         then(runtimeNodeService).should().getParentAssocs(RULE_SET_NODE, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER);
+        then(runtimeNodeService).should().hasAspect(FOLDER_NODE, ASPECT_IGNORE_INHERITED_RULES);
+        then(runtimeNodeService).should().getParentAssocs(FOLDER_NODE);
         then(runtimeNodeService).shouldHaveNoMoreInteractions();
         then(nodeService).shouldHaveNoInteractions();
         assertThat(associated).isFalse();
@@ -283,11 +287,45 @@ public class RuleServiceImplUnitTest
         boolean associated = ruleService.isRuleSetAssociatedWithFolder(RULE_SET_NODE, FOLDER_NODE);
 
         then(runtimeNodeService).should().getParentAssocs(RULE_SET_NODE, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER);
+        then(runtimeNodeService).should().hasAspect(FOLDER_NODE, ASPECT_IGNORE_INHERITED_RULES);
+        then(runtimeNodeService).should().getParentAssocs(FOLDER_NODE);
         then(runtimeNodeService).shouldHaveNoMoreInteractions();
         then(nodeService).shouldHaveNoInteractions();
         assertThat(associated).isFalse();
     }
 
+    /**
+     * Check that a rule set is associated with the folder in the following case:
+     * <pre>
+     *     parent --[link]-> rule set <-[owned]-- owningFolder
+     *     +- child
+     * </pre>
+     */
+    @Test
+    public void testIsRuleSetAssociatedWithFolder_inheritedLinkedAssociation()
+    {
+        // The rule is owned by one node.
+        NodeRef owningFolder = new NodeRef("owning://node/");
+        // The rule is linked to by the parent node.
+        NodeRef parent = new NodeRef("parent://node/");
+        List<ChildAssociationRef> ruleAssociations = List.of(createAssociation(owningFolder, RULE_SET_NODE), createAssociation(parent, RULE_SET_NODE));
+        given(runtimeNodeService.getParentAssocs(RULE_SET_NODE, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER)).willReturn(ruleAssociations);
+        // The parent and the child both supply rule sets.
+        given(runtimeNodeService.getParentAssocs(FOLDER_NODE)).willReturn(List.of(createAssociation(parent, FOLDER_NODE)));
+
+        // when
+        boolean associated = ruleService.isRuleSetAssociatedWithFolder(RULE_SET_NODE, FOLDER_NODE);
+
+        then(runtimeNodeService).should().getParentAssocs(RULE_SET_NODE, ASSOC_RULE_FOLDER, ASSOC_RULE_FOLDER);
+        then(runtimeNodeService).should().hasAspect(FOLDER_NODE, ASPECT_IGNORE_INHERITED_RULES);
+        then(runtimeNodeService).should().getParentAssocs(FOLDER_NODE);
+        then(runtimeNodeService).should().hasAspect(parent, ASPECT_IGNORE_INHERITED_RULES);
+        then(runtimeNodeService).should().getParentAssocs(parent);
+        then(runtimeNodeService).shouldHaveNoMoreInteractions();
+        then(nodeService).shouldHaveNoInteractions();
+        assertThat(associated).isTrue();
+    }
+
     @Test
     public void testIsRuleAssociatedWithRuleSet()
     {