This report examines the role of community-led climate adaptation in enhancing the inclusiveness, resilience, and sustainability of cities, focusing on rapidly growing informal settlements. The report is intended to inform the thinking of governments, donors, and World Bank staff in shaping urban program design. The evidence and case studies included in this report show how more inclusive approaches to urban adaptation are possible. By connecting strategic investment in infrastructure, driven by national and city governments, with mobilized grassroots action, more cost-effective and impactful urban climate adaptation can be achieved. But this will only be realized through a step change in policy, project design and implementation. Inclusive approaches, such as communityled data collection and the co-design of locally-led climate adaptation solutions with organized communities, embedded in project design, are essential. When deployed with innovative climate financing, such as Results-based Finance (RBF), inclusive approaches can help bridge a significant climate financing gap for the most vulnerable underserved areas, strengthening institutions, and incentivizing and enabling new patterns of collaborative working.