A solution for my basement fieldstone walls

I need to replace my heating system - it’s old and burns oil. I have spoken to a ground source heat pump engineer and he echoed what I heard here - sort out your insulation first.

The previous owner started to insulate the basement. It was a disaster and I’m ripping it all out as he didn’t factor in moisture. The lumber he used was mostly rotten and the dry wall was no longer dry or a wall.

The basement is four feet below and above ground level and the walls are a mostly field stone with some brick. I will have to do outside work to collect rain water and move excess away from the house.

I’m proposing to put in a water barrier between the stones and then insulate before adding a wooden frame to fix whatever finish I intend to use - it won’t be plasterboard / drywall - I hate the stuff. At the base of the wall, where the water barrier finishes, I’ll use some kind of floor edging and a gravel filled channel with a drainage pipe leading to a sump pump. I’d then build a new floor above the gravel and floor edging.

Does this sound like a good plan?

Research suggests 6mm sheets of poly but I’m concerned that a) it’s plastic and b) is there a risk of the stones puncturing it? The examples I found online all are against concrete walls.

I found a picture with a similar non permies solution …

I have had a bit to do with this problem.
From should-i-waterproof-basement-from-inside-or-outside/
"Though labor-intensive and expensive to carry out, waterproofing your basement from outside provides the most efficient way of preventing water
and moisture build-up around the foundation of the house.
Consisting of gutters and downspouts, exterior waterproofing ensures that water is directed away from the main structure.
Exterior waterproofing can be undertaken with any type of basement, made either of poured concrete or masonry block walls.
The process likewise entails excavating the soil away from the external basement wall, installing on it a water-resistant membrane,
known as a moisture barrier, and constructing a footer drain pipe that will lead the water to an exterior French drain.

The other issue is condensation within the basement, and that has been covered on other topics here.

I wonder whether you could just build a self supporting cavity wall on top of the new floor? As I see it there are two potential issues: damp coming through the walls, and excessive humidity causing condensation damp issues.
For damp coming though the walls, as long as there is an air gap, it can't affect the inner wall. As you will be aware, cavity walls of brick or block were common construction in the UK during the 1970s and 1980s. But timber frame is the norm now. Your sump arrangement will remove any moisture at the base, so the wall won't be sitting in a puddle.
The main issue you might have is condensation issues due to humidity. A damp unventilated cavity is just what 'dry rot' likes to live in. The humidity could attack the inner wall if of non-durable materials, or cause damp at 'cold spot' where the insulation is thinner for any reason, or inside the insulation itself. Increasing ventilation may help - airbricks or other vents above ground level perhaps.
I found this site (ignore the materials used and just think about the concepts) insulating basements which might be of some help. It suggests that adding a vapour barrier in the basement walls can cause more harm than good, although does say to minimise water ingress through exterior drainage management. It also suggests insulating the floor, which you may want to consider if you are re-laying it. The more I look at the subject the murkier it gets! This site gives a bit more information as to whether a vapour barrier may be needed depending on the climate and temperature differentials expected. I also came across foil scrim kraft vapour barrier. If you decide a vapour barrier is wise, then this seems to be plastic free: Aluminium on a paper backing reinforced with glass fibre scrim. A latex rubber based material might be another more Permie vapour barrier.

Nancy, you’re a star! Lots of food for thought. I’ve had two crazy weeks self moving - never again . . . Now I start the great room and box shuffle getting everything where it should be. I discovered water pouring down an inside basement wall during a big storm, and I have no idea where it went. So sump pump, dehumidifier and lots of pipes have just bumped up the list along with fixing drain pipes, installing water collection and moving excess well away from the house.

John C Daley wrote:I have had a bit to do with this problem.
From should-i-waterproof-basement-from-inside-or-outside/
"Though labor-intensive and expensive to carry out, waterproofing your basement from outside provides the most efficient way of preventing water
and moisture build-up around the foundation of the house.
Consisting of gutters and downspouts, exterior waterproofing ensures that water is directed away from the main structure.
Exterior waterproofing can be undertaken with any type of basement, made either of poured concrete or masonry block walls.
The process likewise entails excavating the soil away from the external basement wall, installing on it a water-resistant membrane,
known as a moisture barrier, and constructing a footer drain pipe that will lead the water to an exterior French drain.

The other issue is condensation within the basement, and that has been covered on other topics here.

I’ve given this a lot of thought but I’ll pass! I’d have to dig out a couple of hundred cubic metres of dirt and on one side is too close to my neighbours drive. I’d have to dig up a section of my own drive and the front wall is under a very large porch / veranda. Certainly getting water away from the house is part of my plan - either store it or move it.

Thanks John.