Context and aim: Contemporary food systems create profoundly negative and interrelated impacts on population health, environmental sustainability, and social equity. Coordinated action at all levels of government is critical, yet little is known about local governments’ (LGs) involvement. Through an analysis of policy documents from all local governments in New South Wales (NSW) and Victoria, this study explores the role of Australian LGs in creating a healthy, sustainable, and equitable food system. Methods and analysis/research findings: We collected policy data by searching the websites of NSW and Victorian LGs. We analysed selected policies against a framework of recommendations for LG action on creating a healthy, sustainable, and equitable food system piloted in a previous study. We found only 13 LGs had a dedicated food system policy, and that most actions on food system challenges were contained in general (non-food specific) policies. Almost all LGs acted on food safety, sustainable local food growing, food waste, drinking water, education and information, and local food initiatives. We found few LGs using economic tools to support consumption of healthy food/discourage consumption of unhealthy food, restricting advertising of unhealthy food, or developing dietary guidelines for non-LG managed settings. Translational outcomes: Some LGs are already taking action on food system issues through the development and implementation of food system policies. However, there are further opportunities for action, including in relation to regulating the sale and marketing of unhealthy food, and in ensuring coherence between the diverse actions on food system challenges undertaken by LGs. Future actions: LGs should be supported in taking action to create a healthy, sustainable, and equitable food system, including through further research on how food system-related policies are developed and implemented on the ground, and what policies are effective in addressing the health, sustainability and equity challenges created by contemporary food systems.