Reading more about keyline, and I realise that the aims of keyline do not fully match up with a complete permaculture/polyculture, but is more directed towards increasing arable pasture :
"According to Yeomans (the originator of the keyline concept), swampy bottomland results from mismanaging the water upstream. To correct the problem, you dig a swale (an on-contour ditch) along the keyline so that water doesn't whoosh right down into the swampy bottom, but instead flows gently (along a 1% downhill slope) to drier areas to the side. This is known as a spreader swale, and it's what folks mean when they talk about moving water from the valleys to the ridges --- you're not technically bringing water uphill, but you are moving it from a wetter area to a drier area. The result is a more productive, damper area to the side of the keyline, and a more productive, drier area in the flat zone directly downhill" (
https://www.waldeneffect.org/blog/Keylines/).
A permaculture might actually look to accentuate the swampiness of a certain area to increase the edge effect and create more niches. Keyline farming would likely look to move that water away and soak it into the soil of the adjacent ridge. Both look to increase soil water retention, but keyline farming is more focused on uniform hydration.
I still think the geographical basis of keyline is useful in judging the placement of permaculture earthworks. My amended questions are;
Is the keypoint (usually) the optimal place for dams?
Do earthworks above the keyline that allow for filtration of water into the soil negatively or positively impact water levels of dams below?