Never mind all ye naysayers! My husband and I moved to the Santa Cruz mountains from the cheap home-steading bliss of central Kootenay British Columbia for the exceptional ecology and niche habitat here. Along with Permaculture, we also wanted access to the thriving Bay Area economy and the beautiful surf (time to take a lil break from skiing). Life's still a work in progress and yes it doesn't come next-to-free but we're figuring it out.
There is a lot of land with natural water sources (springs, seasonal ponds and creeks) in the Santa Cruz mountains in semi-remote and reasonably affordable locations (Ben lommond, Felton, Aptos, San Lorenzo, even los gatos, etc.). What is not affordable are the architectural and engineering documents required for permits required for structures. If you work with a prefabricated structure that comes with proper plans, additional concerns/costs will be soil engineering reports and plot plans. If you want to build your own structure you will need extensive architectural plans ($$$$ my guess is anywhere from 15-75k for a licensed architect to check all your plans for code and draft appropriately). Good news is the first cob structure was just recently approved/permitted in Santa Cruz county (they required reinforcement with rebar). So maybe you can build first (with some consideration of code) and then update for permitting when necessary after? Don't know the penalties...
We looked at one place with a large seasonal creek that ran through the property, which appeared to have potential -through proper permaculture - to become perennial. There were some severe erosion vulnerabilities with the location however. Be sure to consider landslide vulnerability when looking at property in this area because of the loose shell-based soil (can't remember the technical name for this type of sediment), heavy seasonal rains and earthquakes. All of this is something the soil engineer assesses intensively. Some properties have soil reports done, it's very informative to read one if you can get a copy from the realtor (even if you're not interested in that particular property). Fire risk is also important to consider when you are living in a remote forest.
It may sound like a lot, but don't be afraid! There's a way for Permaculture to exist everywhere; as it should.
P.S. There's a lot of great oak forested land in Humboldt county in the hills (around Willits, Garberville, Lost Coast, etc.) not sure how hard it is to find places with water but it's certainly around. Large, remote parcels are pretty reasonable. Oh yeah, and Anderson Valley is just lovely too.
