This chapter presents key interventions to provide a step-change in the understanding of innovation, from orthodox to transformative, in the development of local government public policy in the Melbourne Innovation District (MID) City North, Australia. Innovation refers to the introduction of new technological, organisational, and social solutions in response to problems and challenges that arise in existing social, economic, and environmental settings. A step-change is necessary as traditional innovation practice is not currently fit for purpose to deliver a more inclusive and sustainable society. To illustrate this step-change, we reference the MID City North with the key actors including the City of Melbourne (CoM) and two universities (University of Melbourne and RMIT). The MID City North, established in 2017, is a maturing initiative that has evolved over a period of time punctuated by considerable disruptions, particularly the Australian bushfire (Black Summer 2019–2020) catastrophe and the COVID-19 pandemic. We argue these disruptions are a catalyst for change and therefore an important context for the social shaping of the evolving policy discourse relevant to the MID City North. Both disruptions were powerful pressures, as well as windows of opportunity, to effect policy reform mainly by the key actor: the CoM. We propose four key interventions to build on the policy-reform momentum to better develop pathways to deliver on transformative innovation in policy, specifically for the MID City North and the CoM. These interventions are key because they foster the establishment of favourable policy mixes supporting innovation for the transformative change required for cities transitioning towards sustainability.