The development of eco-municipalities stems from changing systems in Sweden, where more than seventy municipal governments have accepted varying principles of sustainability in their operations as well as community-wide decision-making processes.
The distinction between an eco-municipality and other sustainable development projects (such as green building and alternative energy) is the focus on community involvement and social transformation in a public agency, as well as the use of a holistic systems approach.
In becoming an eco-municipality, cities or towns typically adopt a resolution, based on the Natural Step framework (or Framework for Strategic Sustainable Development (FSSD)), which sets the following objectives: Communities in North America, Europe and Africa ranging in size from villages of 300 to cities of 700,000 have become eco-municipalities.
The resolutions state the community's intention to become an eco-municipality, endorsing the Natural Step sustainability principles and framework as a guide.
There are now twelve eco-municipalities in the United States and the American Planning Association has adopted sustainability objectives based on the same principles.