diff --git a/CRM/Core/BAO/CustomField.php b/CRM/Core/BAO/CustomField.php
index 554eb94dc9ea..dda021c2e8f5 100644
--- a/CRM/Core/BAO/CustomField.php
+++ b/CRM/Core/BAO/CustomField.php
@@ -230,6 +230,8 @@ public static function create(&$params) {
         $optionGroup->name = "{$columnName}_" . date('YmdHis');
         $optionGroup->title = $params['label'];
         $optionGroup->is_active = 1;
+        // Don't set reserved as it's not a built-in option group and may be useful for other custom fields.
+        $optionGroup->is_reserved = 0;
         $optionGroup->data_type = $dataType;
         $optionGroup->save();
         $params['option_group_id'] = $optionGroup->id;
@@ -2030,6 +2032,8 @@ public static function getTableColumnGroup($fieldID, $force = FALSE) {
   /**
    * Get custom option groups.
    *
+   * @deprecated Use the API OptionGroup.get
+   *
    * @param array $includeFieldIds
    *   Ids of custom fields for which option groups must be included.
    *
diff --git a/CRM/Custom/Form/Field.php b/CRM/Custom/Form/Field.php
index 5326a2ff108e..014ae6ad6e0e 100644
--- a/CRM/Custom/Form/Field.php
+++ b/CRM/Custom/Form/Field.php
@@ -318,21 +318,26 @@ public function buildQuickForm() {
     if ($this->_action == CRM_Core_Action::UPDATE) {
       $this->freeze('data_type');
     }
-    $includeFieldIds = NULL;
+
+    $optionGroupParams = [
+      'is_reserved' => 0,
+      'is_active' => 1,
+      'options' => ['limit' => 0, 'sort' => "title ASC"],
+      'return' => ['title'],
+    ];
     if ($this->_action == CRM_Core_Action::UPDATE) {
-      $includeFieldIds = $this->_values['id'];
-    }
-    $optionGroups = CRM_Core_BAO_CustomField::customOptionGroup($includeFieldIds);
-    $emptyOptGroup = FALSE;
-    if (empty($optionGroups)) {
-      $emptyOptGroup = TRUE;
-      $optionTypes = array('1' => ts('Create a new set of options'));
+      $optionGroupParams['id'] = $this->_values['id'];
     }
-    else {
-      $optionTypes = array(
-        '1' => ts('Create a new set of options'),
-        '2' => ts('Reuse an existing set'),
-      );
+    // Get all custom (is_reserved=0) option groups
+    $optionGroupMetadata = civicrm_api3('OptionGroup', 'get', $optionGroupParams);
+
+    // OptionGroup selection
+    $optionTypes = array('1' => ts('Create a new set of options'));
+
+    if (!empty($optionGroupMetadata['values'])) {
+      $emptyOptGroup = FALSE;
+      $optionGroups = CRM_Utils_Array::collect('title', $optionGroupMetadata['values']);
+      $optionTypes['2'] = ts('Reuse an existing set');
 
       $this->add('select',
         'option_group_id',
@@ -342,6 +347,10 @@ public function buildQuickForm() {
         ) + $optionGroups
       );
     }
+    else {
+      // No custom (non-reserved) option groups
+      $emptyOptGroup = TRUE;
+    }
 
     $element = &$this->addRadio('option_type',
       ts('Option Type'),
@@ -350,6 +359,10 @@ public function buildQuickForm() {
         'onclick' => "showOptionSelect();",
       ), '<br/>'
     );
+    // if empty option group freeze the option type.
+    if ($emptyOptGroup) {
+      $element->freeze();
+    }
 
     $contactGroups = CRM_Core_PseudoConstant::group();
     asort($contactGroups);
@@ -370,11 +383,6 @@ public function buildQuickForm() {
 
     $this->add('hidden', 'filter_selected', 'Group', array('id' => 'filter_selected'));
 
-    //if empty option group freeze the option type.
-    if ($emptyOptGroup) {
-      $element->freeze();
-    }
-
     // form fields of Custom Option rows
     $defaultOption = array();
     $_showHide = new CRM_Core_ShowHideBlocks('', '');
diff --git a/CRM/Upgrade/Incremental/sql/5.5.alpha1.mysql.tpl b/CRM/Upgrade/Incremental/sql/5.5.alpha1.mysql.tpl
index d8f9bd573ad3..7a3d52b0592e 100644
--- a/CRM/Upgrade/Incremental/sql/5.5.alpha1.mysql.tpl
+++ b/CRM/Upgrade/Incremental/sql/5.5.alpha1.mysql.tpl
@@ -7,3 +7,10 @@ ALTER TABLE civicrm_option_group MODIFY COLUMN  is_locked TINYINT(4) NOT NULL DE
 #is_reserved already has a default so is effectively required but let's be explicit.
 UPDATE civicrm_option_group SET `is_reserved` = 0 WHERE `is_reserved` IS NULL;
 ALTER TABLE civicrm_option_group MODIFY COLUMN `is_reserved` tinyint(4) NOT NULL DEFAULT 1 COMMENT 'Is this a predefined system option group (i.e. it can not be deleted)?';
+
+#https://lab.civicrm.org/dev/core/issues/155
+{* Fix is_reserved flag on civicrm_option_group table *}
+UPDATE civicrm_option_group AS cog INNER JOIN civicrm_custom_field AS ccf
+ON cog.id = ccf.option_group_id
+SET cog.is_reserved = 0 WHERE cog.is_active = 1 AND ccf.is_active = 1;
+UPDATE civicrm_option_group SET is_reserved = 1 WHERE name='environment';
diff --git a/xml/templates/civicrm_data.tpl b/xml/templates/civicrm_data.tpl
index d101300576df..d20de95e1c7a 100644
--- a/xml/templates/civicrm_data.tpl
+++ b/xml/templates/civicrm_data.tpl
@@ -212,7 +212,7 @@ VALUES
    ('wysiwyg_presets'               , '{ts escape="sql"}WYSIWYG Editor Presets{/ts}'             , NULL, 1, 1, 0),
    ('relative_date_filters'         , '{ts escape="sql"}Relative Date Filters{/ts}'              , NULL, 1, 1, 0),
    ('pledge_status'                 , '{ts escape="sql"}Pledge Status{/ts}'                      , NULL, 1, 1, 1),
-   ('environment'                   , '{ts escape="sql"}Environment{/ts}'                        , NULL, 0, 1, 0);
+   ('environment'                   , '{ts escape="sql"}Environment{/ts}'                        , NULL, 1, 1, 0);
 
 SELECT @option_group_id_pcm            := max(id) from civicrm_option_group where name = 'preferred_communication_method';
 SELECT @option_group_id_act            := max(id) from civicrm_option_group where name = 'activity_type';