The rapid development of tourism in Badung Regency, Bali, has significantly contributed to increasing municipal solid waste generation, creating environmental challenges that threaten the sustainability of tourism destinations. Although the Regional Government of Badung has enacted Regional Regulation Number 7 of 2013 concerning Waste Management and several supporting regulations, the existing legal framework has not comprehensively incorporated the principles of the circular economy into tourism waste management. Consequently, waste management practices remain predominantly oriented toward collection and final disposal rather than waste reduction, reuse, recycling, and resource recovery. This study aims to analyze the existing waste management policy governing the tourism sector in Badung Regency and formulate an ideal legal policy based on circular economy principles to support sustainable tourism development. This research employs normative legal research using statutory and conceptual approaches. Primary legal materials consist of laws and regulations governing waste management, environmental protection, tourism, and regional government, while secondary legal materials include books, scientific journals, and official policy documents. The collected legal materials are analyzed qualitatively through descriptive and prescriptive methods. The study reveals that the current regional regulation has not specifically regulated waste management obligations for tourism businesses, nor has it established incentive mechanisms encouraging circular economy implementation. Therefore, reformulation of the regional policy is required by strengthening waste reduction at the source, extending producer responsibility, promoting collaborative governance, and integrating circular economy principles into tourism governance. Such policy reform is expected to enhance environmental sustainability while maintaining the competitiveness of Bali as a world-class tourism destination. Keywords: Circular Economy, Public Policy, Sustainable Tourism, Waste Management.