In the 21st century, the creation of built environments that are carbon neutral and water sensitive is critical for addressing sustainable urban development challenges. Both require transformative change: Decarbonisation to mitigate greenhouse gas emissions and incorporation of green-blue water sensitive solutions thttps://www.mdpi.com/2071-1050/12/11/4745/htmo adapt to climate change impacts. Transition pathways in both arenas involve combinations of new technology, innovative urban design, enabling policies and regulations, new processes for planning and managing urban development, and demand-side changes in consumer attitudes and practices for urban living related to energy and water use. In this paper, we present new knowledge, concepts and frameworks developed for application in Australia, as well as internationally, through research by the national Cooperative Research Centres for Low Carbon Living (CRCLCL) and Water Sensitive Cities (CRCWSC) between 2012 and 2020. These findings and outputs illustrate common features of the research strategies and initiatives that were central to the activities of the CRCs, and highlight promising directions for collaborative interdisciplinary and transdisciplinary research that drives urban sustainability transformations towards carbon neutral and blue-green cities.