Local governments in cities around the world will not be able to cope with climate change impacts until they enhance their capacity to adapt. Past efforts to build local capacity, however, have often been unsuccessful. Building municipal capacity to formulate and implement climate adaptation plans will, in our view, require a new approach. Special attention will need to be paid to (1) contingent financial arrangements; (2) widespread and continuous stakeholder engagement; and (3) a commitment to experimental problem-solving. Most important, to respond to the scientific and technical uncertainties surrounding climate risks, local governments will have to enhance their ‘adaptive governance’ capabilities.