Product service systems are frequently cited as key strategies in the transition to a circular economy. The main aim of CE is sustainable development, hence, this paper intends to highlight the importance of considering the territory in the design and implementation of circular PSS 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 and territorial 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 local value creation process of PSS strategies. In addition it highlights the importance of intangible resources in the mobilization of other resources, and the relevant role of collaboration in the design of circular PSS strategies.