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The development and implementation of extended producer responsibility (EPR) policies to manage e‐waste provide multilevel governance frameworks for achieving greater material circularity. However, the roles and responsibilities that are allocated to various stakeholders under these policies, which are crucial for program effectiveness, often vary across jurisdictions, and consensus is lacking about the best types of relationships and collaboration that should govern municipalities' contributions to EPR programs. Against this backdrop, and since this issue is poorly researched, we conducted an empirical investigation to identify the main drivers and barriers influencing municipalities' collaboration with an e‐waste EPR program in a Canadian province where municipalities are free to decide whether or not to engage with the program. Based on our study, we explore policy implications for similar programs in other jurisdictions, and propose questions for further research. Our findings identify key motivations for collaboration, including perceived program legitimacy, program funding, and logistical efficiencies. Conversely, a lack of program transparency, failure to support local employment, a focus on recycling instead of reuse, and limited program scope are identified as disincentives to program participation. Policymaking for e‐waste management and circularity need to consider municipalities' interests and contributions to ensure successful implementation. [ABSTRACT FROM AUTHOR]