Placemaking is an approach to designing urban spaces based on their existing values and identities. It has emerged as a response to citizens wishing to have an active role in the planning process and influence the development of their own surroundings. Placemaking often occurs from spontaneous consequences, with a diverse range of urban stakeholders involved in the process. Leading these complex processes has required local authorities to rethink their approach to urban governance. Despite municipalities being key actors in placemaking contexts, their role in the process is not well understood. Through a comparative case study of Amsterdam, Berlin and Copenhagen, this thesis examines how local authorities have interpreted and contributed to placemaking. The cities are analysed with a theoretical framework consisting of their governance structures, spatial leadership roles, placemaking tools and facilitation of public participation. The results indicate that municipalities interpret placemaking to involve public participation in a place-bound approach. A wide range of stakeholders were identified to be involved in the placemaking process, including local authorities, artists, neighbourhood associations, leisure time clubs, civic interest groups and private property developers. The roles of these actors were found to vary greatly from project to project. The study concludes that – despite some opportunistic flexibility – the municipalities of Amsterdam, Berlin and Copenhagen generally take on a more observing, follower-dominant and bottom-linked role in the placemaking process. This observation implies that during the 21st century, cities have adopted a significantly more adaptive and observant role in their urban governance processes. This is especially evident within the placemaking context, which embraces the idea of co-creation and collaboration.