There is growing interest in coordinated policy and governance processes for sustainable systems innovation and for initiatives that aim to shape, stimulate and manage a transition to more sustainable ‘configurations’ of the systems through which we satisfy our needs for housing, food, mobility, communications, entertainment and so on.

Eco-Innovative Cities (EiC), a pilot programme for eco-innovation within local councils in Melbourne, Australia builds on the development of knowledge, methods and practice in ecodesign over the past decade or so. The development of the EiC programme has been influenced by a desire to explore four issues that arise from literature and practice:

• Balancing the social and the technical in developing eco-innovation
• Understanding the potential for local action for eco-innovation
• The appropriateness of the service sector as an innovation target
• The potential to use new information technology systems to support networking and the diffusion of new eco-innovation initiatives

This chapter frames the approach to the Eco-Innovative Cities programme; presents an overview; looks at the context within the State of Victoria and its high consumption footprint; looks at the projects aims, process and methodology; and offers a review of the outcomes.