Governance, innovation and spatial planning are recognised as dimensions of the territorial development process in the European Regional Policy. This paper explores the joint possibilities of Community-led Local Development (CLLD), as an approach that encourages the participation of local actors in sustainable urban development, and the EU Urban Agenda, as a strategic spatial planning instrument, applied in the cross-border area of the Eurocity of Guadiana. It draws on existing literature and the empirical development of the INTERREG EuroGuadiana 2020 project to define the objectives of the process and the key components of the territorial governance scheme. It shows that the urban governance formula for cross-border cities, based on the combination of European Grouping of Territorial Cooperation (EGTC), CLLD and Urban Agenda, represents an opportunity both to strengthen the organisational capacities of partnerships and to implement inclusive and participatory action plans. It is concluded that the Eurocity of Guadiana must overcome limiting factors such as community resistance to change, as well as the paradox of planning across borders and the demands of cross-border governance. © 2023, The Author(s).