Territorial governance comprises the legislative, policy and planning frameworks that guide planning decisions and the land use management system where many of the decisions are taken. The policy has seen significant change over the past two decades, including the shift from master planning to a normative approach. However, the land use management component appears to be lagging, stuck in a modernist format that emphasises separation, despite the noble principles in the legislation to the contrary. This chapter outlines the evolution of territorial governance with a particular focus on the municipal level. The achievements and failures of the legislation, spatial planning policy and land use management components are discussed. The chapter considers proposals to change the governance systems and address the problems at local municipalities that hinder transformation.