The undoing of the inherited segregated spatial settlement form has proved to be a major challenge, despite the implementation of numerous, deliberate interventions by the South African government over close to three decades. Municipalities, the territorial governance structures closest to citizens and mandated to lead local development, have employed various planning concepts with the aim of effecting spatial transformation. This chapter reflects on the concept of smart cities, including its international origins in the early 1990s and the lack of a collective understanding and varied definitions of the term. The chapter further reflects on what a smart approach to spatial transformation could look like. Lessons that can be learned from local South African smart initiatives are discussed. The chapter concludes that the impact of current South African municipal smart city initiatives on spatial transformation is not immediately apparent; however, when integrated into the system of territorial governance—which aims to unify a place-based approach and multi-level governance—the smart city concept may contribute to spatial transformation over the long term, given an appropriate implementation approach.