Established and emerging alternative food networks (AFNs) are providing developments to circular economy within the Australian urban food system. In identifying and evaluating areas of AFNs providing positive externalities contributing to circularity, this systematic review provided an engineering and management science perspective on AFNs. Key foci were urban agriculture, emergent technologies, community gardens and prosumer practices and how their use of food, energy and water affect sustainability, ecosystem services and cleaner production in the transition towards a circular economy. Analysis of how flows through the food-energy-water nexus were utilised from food production, consumption and distribution processes was one aspect of this review. Alternative food networks are not always inherently benign; however, efficient and informed use of technologies and best practices have the potential for significant reductions in the current environmental impact of urban agriculture, community gardens, farmers' markets and supply chain advocates. AFNs within the urban food system promote environmental benefits through innovative and diverse incorporation of resources, energy, technologies, practices and structural dependencies. This study reviewed the state-of-the-art of features of AFNs that create value both for the prosumer and for the environment. Concepts identified within this review can pioneer the transition of the food network from the current high-impact state into a low-impact future in a predominantly productivist system. In creating value in AFNs by lowering associated economic, energy, area and resource costs, and making AFN systems more resilient, self-sufficient and localised, a circular economy can be grown, even from one's very own backyard.