This article seeks to contribute to understanding the practical “how” of a just climatetransition as a systemic change with a focus on the local level. With the backdrop ofthe central role of municipalities in terms of governance in achieving climate transitionwhile also fulfilling societal functions, it explores cases of eco-social innovations (ESI) ofcircular practices, with a specific interest in their transformative potential from aclimate-justice perspective. We applied a qualitative and exploratory methodology inthe context of a Swedish city operationalizing a climate-transition program whiledrawing upon (trans)national networks. The exploration suggests that the ESIs contributein terms of relating to six intertwined systemic conditions, exposing the scaffolding ofthe current unsustainable system. The ESIs also reveal alternative modes of dwellingthat acknowledge constructive relationality and can potentially transform human desiresand lifestyles. We conclude that the role of a municipality and the use of governancemechanisms vary depending on the systemic conditions at stake and the powerresources at play. As places and innovative areas, municipalities can aspire to beFoucauldian eco-social heterotopias, real utopias that critically reflect unsustainable,habituated dwellings and serve as spaces for reversal and transformation.