The word "permaculture" was coined in 1978 by Bill Mollison, an Australian ecologist, and one of his students, David Holmgren. It is a contraction of "permanent agriculture" or "permanent culture."

There are three main ingredients to permaculture:

+ Shared ethics of "earth care", "people care", and "fair shares" (which is shorthand for limits to populations and consumption, and the fair distribution of resources to further the work of earth care and people care). Permaculture also stresses the importance of taking personal responsibility for one's actions.
+ Ecological principles derived by the observation of natural systems by ecologists.
+ Design tools and processes that allow an individual or group to assemble conceptual, material, and strategic components into a "pattern" or "plan of action" that can be implemented and maintained with minimal resources.

Permaculture deals with plants, animals, buildings, and infrastructures such as the supply of water, energy and communications. However, permaculture is not about these elements themselves, but rather about the relationships we can create between them by the way we place them in the landscape.

Planning and design are crucial to permaculture. For example, dams and water tanks should be placed above the house and garden so that gravity, rather than a pump, is used to direct flow. Home windbreaks should be placed so that they protect the home from wind, but do not shade it from winter sun. The garden should be between the house and the chicken pen, so that garden refuse (good chicken food) is collected on the way to the pen, and chicken manure is easily shovelled over the garden.

Permaculture is most effective at property and regional level where we are dealing with common values of resources. It works extremely well within a relatively closed economy where the preservation of the environment and the right of every person to a life of health and dignity are valued. When World trade puts commodities onto the market from places that do not share these values, the consequence is that ecologically sustainable systems sometimes appear to become uneconomic.
Whilst Permaculture systems can then export ethically produced goods to people who value environmental sustainability (Europe in particular) it remains an aim to convert all systems to a sustainable footing.
There are farms and households all over the World operating on Permaculture principles.