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Designing circular economy policies and planning approaches in cities is an emerging research field and the aim of the present paper is to contribute to the existing body of literature by analysing multiple governance forms whereby municipalities can support and facilitate a local level transition to a circular economy. The purpose of this article is therefore to analyse how cities and municipalities can support and facilitate the circular economy through multiple modes of governance, e.g. through the use of own assets to support the circular economy; the use of the ownership of utilities and waste companies to support the circular economy; the use of rule enforcement and/or economic regulation or through facilitating, coordinating, collaborating and encouraging. The analysis in the article is based on two in-depth case studies of projects seeking circular economies, in which Danish municipalities collaborated with local stakeholders to close the material loop for demolition materials and textile waste. Overall, this study is based on an action research approach that emphasises the benefits of co-innovation processes carried out between multiple stakeholders. The analysis of the case studies concluded that municipalities can function as an important change agent to support and facilitate a transformation towards a circular economy. • Analysis of four modes of local governance for a circular economy. • Case studies on the recirculation of demolition materials and textile waste. • Analysis of how cities and local governments can contribute to a transition towards a circular economy. [ABSTRACT FROM AUTHOR]