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This publication explores how system innovations with municipalities as partners can contribute to sustainability transformation. The findings are based on a qualitative case study conducted from November 2021 to November 2023. Overall, three questions were pursued: Firstly, how could the system innovation in Eberswalde develop through existing partnerships? Secondly, which everyday practices of municipalities influenced the innovation development process? And thirdly, which characteristics and attributes of the organizations and individuals involved were important for the development of the system innovation? The here presented development of the system innovation is a joint effort. All partners made relevant contributions. As the innovation affects provision of public services, the municipalities, which are responsible for those in Germany, played a special role: they used their influence and applied their leeway, particularly in decisive regulatory procedures, to contribute to the development of the innovation. This was possible, among other things, because the innovation was linked to key strategy papers in the examined municipalities. The results show different everyday practices of municipalities are linked to the development of system innovation, such as (1) development of strategies, (2) alignment of mandatory tasks with strategies, (3) formal and informal communication, (4) management of expert committees, (5) decision-making, (6) involvement of various stakeholders and (7) leadership of employees. The innovation development process benefited from a wide variety of characteristics and attributes of the participants. The decisive factor was not that one individual or organization should hold as many as possible, but that they should be available and accessible as widely as possible within the cooperation network.