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Community structure in networks is observed in many different domains, and unsupervised community detection has received a lot of attention in the literature. Increasingly the focus of network analysis is shifting towards using network information in some other prediction or inference task rather than just analyzing the network itself. In particular, in neuroimaging applications brain networks are available for multiple subjects and the goal is often to predict a phenotype of interest. Community structure is well known to be a feature of brain networks, typically corresponding to different regions of the brain responsible for different functions. There are standard parcellations of the brain into such regions, usually obtained by applying clustering methods to brain connectomes of healthy subjects. However, when the goal is predicting a phenotype or distinguishing between different conditions, these static communities from an unrelated set of healthy subjects may not be the most useful for prediction. Here we present a method for supervised community detection, aiming to find a partition of the network into communities that is most useful for predicting a particular response. We use a block-structured regularization penalty combined with a prediction loss function, and compute the solution with a combination of a spectral method and an ADMM optimization algorithm. We show that the spectral clustering method recovers the correct communities under a weighted stochastic block model. The method performs well on both simulated and real brain networks, providing support for the idea of task-dependent brain regions.