Municipalities in rural areas are facing a variety of challenges. The lasting effects of the pandemic, the climate crisis, the cost of living crisis, inadequate health care services and public transportation – these are just a few of the many global challenges that affect rural municipalities directly. Within the model project "Shaping the Future Together Locally", we are cooperating with five rural municipalities from all over Germany to establish municipal development councils. Over the course of two years, these councils are meant to develop strategies for dealing with the complex issues of our times. Utilizing a multi-stakeholder approach bringing together representatives from civil society, business, politics and administration, they enable collaborative strategy making and develop an action plan for local development. Local coordination from the partner municipality and local moderation teams are trained and continuously supported within this project to ensure sustainability of the approach. Together with the municipalities, we aim to test and further develop municipal development councils as an innovative democratic instrument that addresses societal challenges locally.