Product service systems (PSS) are frequently cited as key strategies in the transition towards the circular economy (CE). The main aim of the CE is sustainable development (SD), hence, this paper intends to highlight the importance of considering the territory in the design and implementation of circular PSS strategies for ensuring SD. This research is in an early stage, thus, a literature review was conducted to define the main characteristics of circular PSS, and the concepts of the territory, territorial and local resources from a PSS perspective. In addition, an analysis of the state-of-the-art approach of the integration of the territorial scale in the design and development of PSS strategies was conducted. This study contributes to the understanding of the territory and its relevance in the local value creation in circular PSS strategies. Furthermore, the results highlight the relevant role of collaboration and the importance of intangible resources in the mobilisation of other resources in the design of circular PSS strategies.