I have a
pond with a
berm and water tanks, and I would say because water tanks are expensive and never get any cheaper, and because if something goes wrong with them everything is screwed, including your time and money that you won't want to spend redoing the water tank/tanks. So I would say water tanks on an already existing hill that is not effected by erosion. You want the tanks solid and level because you'll have at least two lines and valves coming off a tank that you don't want pressure from the ground shifting, sinking or eroding.
The soil you dig out of your
pond, however, is rich stuff, and it would be great to use to plant in, or to make hugels. I like
hugel trenches, and I'd put that soil in those trenches, or spread it on vegetable beds. Usually the soil that comes out of a natural pond is clay, which is why the pond exists, because it's lining the depression of the pond and keeping the water from disappearing into the ground, so it's not really great structural soil because it expands and contracts, usually a lot, which would shift a shed, a water tank, a house, etc., through the year as it expands and contracts. When houses are built on clay you need to dig below the clay and attach to bedrock, so even in that case a heavy structure is not a good idea on clay.
I like a flat raised berm on the draining side of the pond because I can make that side of the pond shallow, it's planted with willows, I can launch a boat from it, and I can mow a flat berm to have access with a truck or an ATV for maintenance. Pond maintenance can be a big deal, and the easier access you have to most edges of your pond, the less time it will take.
An important distinction: Permaculture is not the same kind of gardening as organic gardening.
Mediterranean climate hugel trenches, fabuluous clay soil high in nutrients, self-watering containers with hugel layers, keyhole composting with low hugel raised beds, thick Back to Eden Wood chips mulch (distinguished from Bark chips), using as many native plants as possible....all drought tolerant.