AbstractClimate services are tools or products that aim to support climate‐informed decision making for the adaptation to climate change. The market for climate services is dominated by public institutions, despite the efforts made by the European Commission to increase private enterprise in the market. The business model perspective has been proposed as a framework for enabling market growth through the development of appropriate business models for the provision of climate services. However, there is a lack of structured knowledge on how to approach climate service design and development from a business model standpoint. In this contribution, we first analyze the role of stakeholders in the design and development of climate services and identify opportunities for engaging users in the creation process. Afterward, we explain our approach to climate service design and development using a business model perspective. To illustrate the proposed approach, we describe the co‐creation of a climate service to support the adaptation to climate change of the urban water supply system in Valencia, Spain, and discuss the main findings and lessons learned from applying this approach.