Waterfront management plays an important role in spatial planning and is a key driver of urban development. To address the complex challenges facing waterfronts, mostly resulting from the ongoing climate, energy and socio-economic crises, participatory planning strategies involving local government and stakeholders are essential for long-term sustainability and resilience. The international literature provides relevant examples of approaches to developing waterfronts, while the Greek context seems to have many unresolved issues. This article examines the role of coastal municipalities in setting priorities and managing dilemmas for sustainable local development to achieve liveable and resilient waterfronts for all. It takes Faliro Bay (i.e. one of the two supra-local poles of Athens’ southern waterfront, the other being Ellinikon) as a pilot study area. Its focus is on the municipalities of Kallithea and Moschato-Tavros because of their critical involvement in the waterfront transformation, especially over the last two decades. The question arises as to whether and to what extent the coastal municipalities are involved in discussing, planning and managing their waterfronts or whether this is ultimately the exclusive responsibility of the regional unit to which they belong or the central administration. The key issue is whether planning decisions/priorities are made with a view to meeting local needs or wider investment interests. To identify the strengths and weaknesses of the governance structures, the research relied on interviews with local authorities and mayors. These were conducted in parallel with the fieldwork. This will enable high quality planning that maintains the spatial continuity of the waterfront and its integration into the urban environment. The next stage will be to take a holistic approach to coastal planning, by surveying local communities.