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Purpose: Previous research on clients’ procurement typically focuses on their procurement strategies. Research on local sustainability governance has, however, revealed that municipalities also govern construction projects through land allocations. This paper aims to explore how housing developers are governed by municipal land allocations and the implications. The purpose is to problematize the governance of sustainability during the early phases of construction projects. Design/Methodology/Approach: A case study on an urban development project in Sweden was conducted. Empirical material consists of interviews with housing developers’ project managers, observations from seminars and meetings between the developers and municipality officials and the municipality’s policy for land allocations and sustainability program. This was analyzed using Bulkeley and Kern’s (2006) typology of modes of governing change at the local level as a framework. Findings: The results provide examples where the municipality governs the housing developers by authority, enabling and provision. The implications for the housing developers during the early phases of their construction projects are explored. Research limitations/implications: Findings have implications for research on clients’ procurement strategies because it illustrates how they can be governed during the early phases of certain construction projects, which might limit their flexibility during procurement. However, the study is only based on housing projects in one urban development project governed by one municipality. Practical implications: Findings provide support for clients when designing their procurement strategies. Originality/value: This paper contributes to the understanding of how sustainability is governed in construction projects and the implications for housing developers’ flexibility.