This research examines permaculture adoption in Mexicali, Baja California, a city facing severe desertification and extreme weather. A survey of 393 participants underwent exploratory factor analysis, identifying four key influences: sustainability policies, circular economy, knowledge management, and permaculture adoption. Using PLS-SEM, the study found that circular economy and knowledge management significantly drive permaculture adoption. These findings stress the importance of customized policies, highlighting circular economy and knowledge management as essential for fostering sustainability in arid regions.