Municipalities function as living systems, and their ability to adapt depends as much on organisational learning and collaboration as on policy or resources. Organisation Development (OD) provides a foundation for this adaptability by aligning strategy, structure, culture, and processes so that they reinforce one another. When understood as an organisational capacity, OD enables change to become purposeful, participatory, and oriented toward public value. Building this capacity requires integrating Organisation Design with broader OD practices. Design offers structural clarity (defining roles, responsibilities, and governance), while OD cultivates the cultural and behavioural conditions that allow these structures to work in practice. Together, they equip municipalities to respond to complex challenges with coherence, transparency, and adaptive capability. This learning unit introduces OD as a guiding approach for municipal transformation. Through frameworks, practical methodologies, and tools such as Local Digital Twins, it prepares public servants to plan, implement, and sustain evidence-based change that strengthens community trust and supports resilient urban governance.