--- rules/modules/taxonomy.rules.inc.orig	2011-01-22 21:33:18.004468246 -0800
+++ rules/modules/taxonomy.rules.inc	2011-01-22 21:33:57.525093691 -0800
@@ -103,6 +103,22 @@
     'module' => 'Taxonomy',
   );
 
+  $info['rules_action_taxonomy_assign_parent_term'] = array(
+    'label' => t('Assign a parent term to a term'),
+    'arguments' => array(
+      'taxonomy_term_parent' => array(
+        'type' => 'taxonomy_term',
+        'label' => t('Parent term'),
+      ),
+      'taxonomy_term_child' => array(
+        'type' => 'taxonomy_term',
+        'label' => t('Child term'),
+      ),
+    ),
+    'help' => t('Use two terms and make one the parent of the other. The terms must be previously loaded or added.'),
+    'module' => 'Taxonomy',
+  );
+
   $info['rules_action_taxonomy_term_assign_to_content'] = array(
     'label' => t('Assign a term to content'),
     'arguments' => array(
@@ -188,6 +204,17 @@
 }
 
 /**
+ * Action: Assign a term as the parent of another term.
+ */
+function rules_action_taxonomy_assign_parent_term($taxonomy_term_parent, $taxonomy_term_child, $settings) {
+  $sql = "DELETE FROM {term_hierarchy} WHERE tid = %d AND parent = 0";
+  db_query($sql, $taxonomy_term_child->tid);
+  $sql = "INSERT INTO {term_hierarchy} (tid, parent) VALUES (%d, %d)";
+  db_query($sql, $taxonomy_term_child->tid, $taxonomy_term_parent->tid);
+  return array('taxonomy_term_child' => $taxonomy_term_child);
+}
+
+/**
  * Action: Assign or remove a term to content.
  */
 function rules_action_taxonomy_term_assign_to_content($node, $taxonomy_term, $settings) {