The concept of sustainability presupposes that public organizations see tasks holistically and cross-sectorally, but also that they co-create solutions with local communities and consider sustainability in a geographical and cultural context. This way of thinking nevertheless conflicts with the key performance indicator thinking in New Public Management (NPM). The method of setting goals and asking for reporting on sustainability indicators oversimplifies complex relationships and prevents real societal transitions. In this chapter, we look more closely at the concept of sustainability and link it to governance of the public sector. The first part of the chapter delves into the origin and historical development of the concept of sustainability, which is then problematized and analyzed in light of community planning and development in the municipalities.