This study explores the adoption of permaculture in Mexicali, Baja California, a city severely affected by desertification and extreme climate conditions. A questionnaire was administered to 393 participants, and an exploratory factor analysis was used to determine the underlying constructs impacting this. It identified four key constructs: sustainability policies, circular economy practices, knowledge management, and permaculture adoption. These constructs were further analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate their relationships. The results revealed that circular economy practices (like recycling and product design) and knowledge management (documentation, teaching) significantly promote permaculture adoption, while sustainability policies showed no statistically significant effect. There is a sentiment of government inaction, and citizen distress by the devasting effects of climate change in the region, due to the current lack of policies. These findings highlight the need for tailored policy frameworks, emphasizing the critical roles of circular economy initiatives and effective knowledge management strategies in fostering permaculture. The study provides actionable insights for sustainable planning, offering practical pathways to enhance resilience and sustainability in arid regions.