Municipal innovation refers to new approaches municipalities use to improve service delivery, increase efficiency, or address emerging challenges. Provinces may support innovation through pilot programs, regulatory flexibility, funding for experiments, and knowledge-sharing initiatives. Innovative approaches include technology adoption, service delivery partnerships, alternative governance structures, new revenue tools, and creative problem-solving. Municipal associations facilitate innovation sharing among communities. Successful innovations may become standard practices or inspire legislative changes enabling broader adoption. Innovation requires willingness to accept some failure as part of learning. Small municipalities can be particularly innovative due to flexibility and community connection.