diff --git a/NEWS.md b/NEWS.md
index eed9d83..0591529 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -4,6 +4,7 @@
 * Improvements to printing (#166, thanks @szimmer)
 * Fix for situations where filtering a calibrated/PPS survey design when filtering 0 rows (#159, @bschneidr)
 * Fix for anonymous functions in `rename_with()` (#172, thanks @josiahg2)
+* Fix for chaining filter & group_by in database backed surveys (#173, thanks @jamgreen)
 
 # srvyr 1.2.0
 * `survey_prop()` now uses proportions as the default, which should confidence interval improve coverage, but does mean results may slightly change (#141, #142, thanks @szimmer)
diff --git a/R/lazy_tbl.r b/R/lazy_tbl.r
index d80780e..c43ee48 100644
--- a/R/lazy_tbl.r
+++ b/R/lazy_tbl.r
@@ -61,8 +61,9 @@ localize_lazy_svy <- function(svy, dots = NULL) {
     dplyr::select(svy$variables, !!!rlang::syms(vars_to_collect))
   )
 
+  class(svy) <- setdiff(class(svy), "tbl_lazy_svy")
   if (needs_subset) {
-    svy <- subset_svy_vars(svy, as.logical(svy$variables$`__SRVYR_SUBSET_VAR__`))
+    svy <- srvyr::filter(svy, as.logical(`__SRVYR_SUBSET_VAR__`))
   }
   svy
 }
diff --git a/tests/testthat/test_database.R b/tests/testthat/test_database.R
index fbb7ab4..15c6a8f 100644
--- a/tests/testthat/test_database.R
+++ b/tests/testthat/test_database.R
@@ -13,6 +13,7 @@ if (suppressPackageStartupMessages(require(dbplyr))) {
   # replace its successor
   #  has_monetdb <- suppressWarnings(suppressPackageStartupMessages(require(MonetDBLite)))
   data(api)
+  data(scd, package = "survey")
 
   # dbs_to_run <- c("RSQLite", "MonetDBLite")
   dbs_to_run <- "RSQLite"
@@ -25,15 +26,7 @@ if (suppressPackageStartupMessages(require(dbplyr))) {
       db_avail <- TRUE
     } else if (db == "RSQLite" && !has_rsqlite){
       db_avail <- FALSE
-    } #else if (db == "MonetDBLite" && has_monetdb) {
-    #   con <- DBI::dbConnect(MonetDBLite::MonetDBLite(), path = ":memory:")
-    #   cleaned <- dplyr::select(apistrat, -full)
-    #   names(cleaned) <- gsub("\\.", "", names(cleaned))
-    #   apistrat_db <- copy_to(con, cleaned)
-    #   db_avail <- TRUE
-    # } else if (db == "MonetDBLite" && !has_monetdb) {
-    #   db_avail <- FALSE
-    # }
+    }
 
     test_that(paste0("DB backed survey tests - ", db), {
       skip_if_not(db_avail)
@@ -86,6 +79,19 @@ if (suppressPackageStartupMessages(require(dbplyr))) {
           summarize(api99 = survey_mean(api99))
       )
 
+      # Can filter then group_by and summarize
+      expect_df_equal(
+        suppressWarnings(dstrata %>%
+                           filter(stype == "E") %>%
+                           group_by(both) %>%
+                           summarize(api99 = survey_mean(api99))),
+        local_dstrata %>%
+          filter(stype == "E") %>%
+          group_by(both) %>%
+          summarize(api99 = survey_mean(api99)) %>%
+          mutate(both = as.character(both))
+      )
+
       # Can mutate and summarize
       expect_df_equal(
         suppressWarnings(dstrata %>%