Provided are a method, system, and program for managing volumes in volume groups configured in a storage system. A first set of volumes is assigned to a first volume group and a first host is assigned to the first volume group. A second set of volumes is assigned to a second volume group and a second host is assigned to the second volume group. The first host may only access volumes in the first volume group and the second host may only access volumes in the second volume group, wherein one volume is assigned to both the first and second volume groups to be accessible to both the first and second hosts.